Government maintains stall on aged care pay rise

The Government has written to the Fair Work Commission, reiterating its commitment to fund aged care worker pay rises, but standing by its decision to phase in the higher wages. Last November, the FWC gave a 15% pay rise to aged care workers delivering direct care after unions called for a 25% increase. The government has only committed to phasing in funding for the rise, offering 10% on 1 July 2023 and the remaining 5% on 1 July 2024 – 18 months away. The FWC will give consideration to a further 10% rise and pay increases for non-direct-care aged care workers. Unions are calling for the pay rise to be delivered immediately, with the United Workers Union presenting the FWC with dozens of statements from aged care workers demanding the pay rise now – see example in the image above. The Government said it will fund pay rises for some non-care workers.

“The Commonwealth confirms that its funding commitment… extends to any decision of the Commission regarding funding increases for Head Chefs/Cooks and Recreational Activity Officers (RAOs).”

The Government submission states that its own reforms to the Fair Work Act last year to make job security, gender equality and equal pay for equal jobs objectives of the Act. While it said those issues are relevant to the aged care case, “it does not agree that these new provisions mandate the interim increase commencing immediately.” The Government also said it would not comply with the unions’ request to backpay pay rises.

“The Commonwealth’s Funding Decision is to fund wage increases that commence on 1 July 2023 in the manner set out in the December Submissions, and accordingly that Funding Decision does not extend to funding any backpay in accordance with the backpay proposal,” they wrote.

The Government said the FWC should not take the issue of staff “attraction and retention” into its decision making.

“Attraction and retention are concerned with an individual’s choice to become or remain employed, while secure work is concerned with the security of an individual’s position while employed, as determined by factors outside the individual’s choice.”