Albanese reacts to pay rise
Aged care workers are set to receive a 15% pay increase thanks to a new interim ruling from the Fair Work Commission (FWC) that said it’s "plainly justified."
"We are satisfied that an interim increase of 15 per cent for nurses working in aged care in each of the relevant classifications is plainly justified by work value reasons," the FWC said in the lengthy ruling.
The ruling covers nurses, assistants in nursing (AIN), personal care workers, and home care workers. According to the FWC, it recognises that work in these feminised industries has been "historically undervalued" – likely due to gender. It also recognised how work undertaken by these employees has changed significantly in the past two decades.
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The 15% increase is lower than the 25% hoped for by unions. However, they still welcomed the decision.
"This is a reasonable start but we need the commission to go further and permanently end the poverty wage settings that dominate aged care," said health services union secretary Gerard Hayes.
Carolyn Smith, aged care director at the United Workers Union, called the decision a "historic moment."
"The Fair Work Commission's order of pay rises of 15% for direct care workers in aged care – including nurses, AINs, personal care workers and home care workers – is a historic moment and starts addressing systemic underpayments that have caused a crisis in the sector," Smith said. "We also see it as vitally important that the federal government's commitment to fund this pay rise extends to paying workers up front rather than being phased in for years."
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The Aged and Community Care Providers Association (AACPA) also welcomed the pay rise granted by the FWC, saying it would boost recruitment for employers.
"A better paid workforce means we can attract more workers into aged care and make our sector an employer of choice," said AACPA CEO Tom Symondson. "Most importantly, a better-paid workforce means a higher quality of care for older Australians, enabling them to live their best lives."
The federal government promised in August that it would fund the increase in aged care workers' wages, a move welcomed by AACPA.
"ACCPA has been engaged with the work value case since late 2020 and we are delighted that the federal government has committed to fully fund the pay increase for aged care workers resulting from this case," Symondson said. "We look forward to working with the relevant unions and the government on the implementation and timing of this important decision so that funding from the government flows at the same time as the pay increase."
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In a statement, Workplace Minister Tony Burke said it is a "huge win" for the workers and unions who pushed for the outcome.
"We fought for this pay rise because our government is committed to getting wages moving again – particularly in low-paid female-dominated industries like this one," Burke said.
Prime Minister Anthony Albanese also commended the pay increase, saying on Twitter: "Do I welcome this news? Absolutely."
In its ruling, the FWC clarified that the 15% increase does not conclude its consideration of the 25% hike requested by unions for other employees, such as aged care administrative and support staff.
"Nor are we suggesting that the 15 per cent interim increase necessarily exhausts the extent of the increase justified by work value reasons in respect of direct care aged care employees," it said.
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Smith pointed out that aged care workers will be "gutted" to find out that there was no final outcome for lifestyle workers or other aged care support workers.
"Anyone with knowledge of aged care knows lifestyle, laundry, cleaning and catering are essential to delivering the quality care residents need," Smith said. "It is a bitter pill for these workers that decisions on their pay rise have been put off for further consideration."
