The Federal Government has written to the Fair Work Commission promising to fund higher wages for aged care workers, making good on its election pledge but potentially adding billions to the Government’s already burdened bottom line.
The Government’s submission to the Fair Work Commission backed higher wages for aged care workers.
“The Commonwealth supports a minimum wage increase for aged care workers,” the submission said.
However, the submission shied away from proposing a specific wage increase. Unions are bidding for a 25% pay rise for aged care workers.
The Government noted that the range of skills, regulatory requirements and personal attributes for aged care workers have not been adequately reflected in current awards.
“The Commonwealth submits that the work value of aged care workers is significantly higher than the modern awards currently reflect,” the submission states.
The submission noted that the care needs of residents and recipients of in-home care have increased in complexity and acuity over time, and this is also not reflected in current awards.
As promised during the election, the government said it would fund the FWC’s recommendation for higher wages.
“The Commonwealth will provide funding to support any increases to award wages,” the submission said.
The submission also refers to the fact that a high proportion of the aged care workforce are women, noting that some of the lack of recognition for aged care workers has been driven by “gender-based assumptions” about the value of caring work in the aged care sector.
In a press conference this week, Aged Care Minister Anika Wells (above) said, “Until we value care more, we're not going to have people who want to do that care work and feel like their country recognises the complexity and meaningfulness of what they do.”
The Coalition has also come out in support of higher wages for aged care workers, with Shadow Infrastructure and Transport Minister Bridget McKenzie telling Sky News, “The Fair Work Commission will bring down their finding and we will absolutely support that.” The Shadow Minister also failed to put a specific number on a wage increase for aged care workers.
According to the Grattan Institute, delivering a 25% pay increase to aged care workers will add $3 billion to the Government’s bottom line every year. Adding superannuation to the wages bill will bring the total cost to $3.4 billion, the Australian Financial Review has reported.
StewartBrown estimates put the cost of a 25% pay rise at $16 billion to $18 billion over four years. This estimate includes the Government’s commitment to require a registered nurse on duty 24 hours a day and 215 minutes of direct care be delivered to residents per day.
The peak body for aged care providers Aged & Community Care Providers Association (ACCPA) welcomed
the government’s commitment to fund a wage rise for aged care workers.
“ACCPA supports higher wages and improved working conditions for aged care staff,” said ACCPA Interim CEO Paul Sadler (pictured). He noted that higher wages are needed to attract workers to the sector as staff shortages remain an “acute problem”.
