The Fair Work Commission’s interim 15% pay rise for aged care workers will be phased in over 12 months if the Federal Government has its way.
In a submission to the FWC, the Government has proposed implementing the 15% wage increase in two stages – 10% on 1 July 2023, and the remaining 5% on 1 July 2024.
“This timing will allow the Commonwealth to implement the proposed interim increase appropriately through its various aged care funding mechanisms.
“Commencement from 1 July 2023 will also allow implementation of the interim increase to align with the annual indexation of aged care programs, scheduled funding changes to aged care program arrangements and the minimum wage uplift flowing from the annual wage review,” the submission reads.
In an interview on Sunrise, Aged Care Minister Anika Wells (pictured) said the staggering of the pay rise will ensure the Government “has its ducks in a row”.
“We have to make sure when we are giving hundreds of millions of Australian taxpayer dollars, we’re doing it in a way that’s accountable and that money is going to where it’s most needed, which is in the pockets of aged care workers.
“We’re also still undergoing this process, so whilst we do that, we are doing everything we can to make sure that, come 1 July, that 10% pay rise is there, because they’ve earned it,” she said.
Unions and sector bodies have expressed concern at the delay, with Tom Symondson, CEO of ACCPA (pictured), stressing the importance of aged care workers being adequately rewarded as per the recommendations of the Royal Commission.
“We are experiencing a workforce crisis now and we need to be able to pass on pay rises to our staff as soon as possible to recognise their incredible contribution and to give them the confidence to remain in our sector.
“We expect to see further stages of the FWC work value case expected early next year to address the work of kitchen, laundry, recreation activities and administrative staff who were not included in the initial decision to award a 15 per cent pay increase,” he said.
The Aged Care Workforce Industry Council (ACWIC) has signalled “qualified support”, with Chair Libby Lyons (pictured) acknowledging the “challenges and costs” of immediately implementing the pay rise.
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Aligning the pay rise with the start of the financial year and planned reforms will reduce the potential administrative burden on providers and employers, which is a significant concern in a sector that is undergoing major transformation.
“At the same time, we acknowledge that this is a bitter blow for affected workers, many of whom are struggling to make ends meet in these challenging times, with ever-increasing costs of living due to high inflation and interest rates.
“Ultimately, staged improvements to wages will assist with the retention and attraction of direct care workers, but I think that 18 months will be too long for some workers to wait, and we may well see more workers exit the sector in the meantime,” she said.
The Fair Work Commission is continuing to deliberate on whether to grant the full 25% increase unions had asked for, as well as whether to extend it beyond front-line workers to administrative and support staff.
