The peak body has made a submission to the Fair Work Commission’s annual minimum wage review.
The eight-page submission argues that while aged care providers broadly support wage increases for staff, particularly personal care workers, the Government’s recently announced $17.7 billion four-year funding package for the sector will limit providers’ capacity to fund pay increase for two years.
“It would be incorrect to assume that this gives aged care providers the capacity to deliver significant wage increases in the 2021-22 financial year,” it reads.
The submission points out that the Government’s decision not to accept the Royal Commission’s recommendation to link subsidy indexation to award wage changes means the likely indexation amount for aged care funding subsidies in July 2021 will be an increase of about 1%.
“In the future, this will be addressed through the directions of the Independent Pricing Authority, however this will not occur for at least two years. The outcome of this is that in the next two years there will be significant limitations on the resources of providers in the sector to fund higher wages for staff.”
It’s a solid argument.
Without Government support, providers’ capacity to pay will be limited until the new Pricing Authority determines the true cost of providing aged care services.
The Health Services Union is currently pursuing a case for a minimum 25% increase for aged care workers expected to be heard in October – and former Royal Commissioner Lynelle Briggs AO urged the sector to support the claim in an address to the ACSA National Summit on Wednesday.
“Unless remuneration is increased, the sector will continue to struggle to find an adequate workforce,” she said.
If the sector did join with the unions to back the case, would the Government come to the party?
It’s a question we asked Minister for Senior Australians and Aged Care Services, Senator Richard Colbeck in Tasmania this week – and his response will interest the sector.
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