Aged Care
Labor delivers on aged care reform
The NSWNMA’s long battle for a better deal for aged care workers is starting to pay off.
After nine years of Coalition government neglect, and tireless union campaigning, Labor has delivered on its election commitments for around-the-clock nursing care and more time for care in homes.
Meanwhile, the Fair Work Com-mission has approved a 15 per cent increase in award wages, with the prospect of more to come.
“None of this would have been possible without nurses who provided evidence to the commission and those who campaigned for fair wages in the sector,” said NSWNMA General Secretary, Shaye Candish.
“There is still more work ahead, but we are making real progress.”
15 per cent interim pay rise awarded
Many aged care workers are in line for a substantial pay rise after the Fair Work Commission (FWC) ordered a 15 per cent interim increase to award rates.
The increase applies to nurses and care workers who are paid minimum award rates under the Nurses Award; Aged Care Award; and Social, Community, Home Care and Disability Services Award.
The FWC said a 15 per cent interim increase for direct-care workers was “plainly justified by work value reasons”.
Unions, including the Australian Nursing and Midwifery Federation (ANMF), had applied for a 25 per cent wage increase, arguing that the work of aged care workers had never been properly valued and was significantly undervalued.
It said it would consider possible further increases for these direct-care workers, and whether to also grant a pay rise to aged care administrative and support staff.
NSWNMA General Secretary Shaye Candish said workers on minimum award rates will get the full 15 per cent increase.
Members employed under enterprise agreements will also get an increase if the award rate of pay goes above their current enterprise agreement.
“However, most nurses employed under an enterprise agreement are already paid more than 15 per cent above the award rate, so it is unlikely this interim increase will apply to them,” she said.
“Nonetheless, we will be seeking increases to wage rates in all enterprise agreements when existing agreements expire.”
Labor supports FWC decision
The federal Labor government welcomed the FWC decision and reaffirmed its commitment to fund the pay rise in full.
“A wage rise for aged care workers is not just the right thing to do, it is a smart thing to do,” Minister for Aged Care, Anika Wells, told parliament.
“For some aged care workers, after literally decades in the job that they love, they are about to crack the $30-an-hour barrier for the very first time.”
Treasury modelling accompanying the government’s submission to the FWC said a 25 per cent wage rise could boost labour supply by between 5 per cent and 10 per cent.
Workplace Relations Minister, Tony Burke, said the result signified a first step in changing the undervalued nature of aged care work.
“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.
Women make up about 80 per cent of the aged care workforce.
The commission said in its decision that “gender-based undervaluation of work in Australia arises from social norms and cultural assumptions that impact the assessment of work value”.
It added: “The disproportionate engagement of women in unpaid labour contributes to the invisibility and the under-recognition of skills described as creative, nurturing, facilitating or caring skills in paid labour.”
Aged & Community Care Pro-viders Association’s CEO, Tom Symondson, welcomed the decision but noted it did not cover staff who are not involved in direct care such as kitchen, laundry, recreation activities and administrative workers.
“We look forward to a further decision by the commission that addresses their pay,” he said.
$2.5b for extra staffing
In October, federal parliament passed new aged care laws to increase the amount of direct-care that residents receive and to guarantee an RN onsite 24/7.
Labor’s October budget included an additional $3.9 billion to pay for these and 21 other recommendations of the aged care royal commission.
The new laws increase the number of care minutes residents receive – 200 minutes including 40 from RNs – from 1 October 2023 and 215 minutes – including 44 from RNs – from 1 October 2024.
They also require aged care homes to have an RN onsite 24/7 from 1 July 2023.
These two reforms alone will cost $2.5 billion over four years.
ANMF Federal Secretary, Annie Butler, said the “significant investment” was “the first step to fixing the troubled aged care sector”.