Three factors underpinned the NSWNMA’s Special Case: the impact of inflation, the changed nature of nurses’ work, and the historical gender-based undervaluation of the nursing and midwifery professions.
The Full Bench of the Industrial Relations Commission (IRC) agreed that nurses and midwives deserve a pay increase that recognises three factors: inflation, work value and gender undervaluation.
They were the basis of the Association’s claim – along with our argument that wages were too low to recruit and retain the workforce needed.
The Association told the IRC that nurses and midwives deserved a wage increase on cost-of-living grounds.
We argued that the COVID-19 pandemic had restrained wage increases and fuelled inflation.
Wages were also deliberately suppressed by the state government’s cap on public sector wages growth between 2011 and 2023.
In that period the government restricted wage increases to a maximum of 2.5 per cent per year.
The Association asked the IRC to award a wage increase that restored the real value of wages to pre-2020 levels, provided for real wage growth, and protected the real value of wages in future years.
In its decision, the IRC agreed that the real value of nurses and midwives wages had fallen since the last time it heard a major case to set their rates of pay.
“The extraordinary and unexpected high inflation caused by the COVID-19 crisis provides a proper basis for a one-off reset,” the IRC concluded.
Work value
The Association argued a wage increase was also justified because the work done by nurses and midwives had changed since the IRC last examined it.
The Association said there had been “a tectonic shift” in the complexity, responsibility and level of skill required by nurses and midwives.
This was due to the continuing transformation of the NSW public health system in response to increased demand, chronic disease, acuity and diversity of patients.
The IRC noted that the last major arbitration of wage rates in 2002 and 2003 had lifted rates by a combined 9.5 per cent in two stages.
The combined increase recognised “significant changes to the way that nurses and midwives work in the seven years since their work value had been assessed”.
The IRC said it was satisfied by the evidence that “since the most recent datum point of 1 July 2009, there has been a further significant change to the way that nurses, midwives and assistants in nursing work.”
“Given those changes, the work of nurses, midwives and assistants in nursing are currently undervalued and they deserve a one-off increase.”
Gender undervaluation
The IRC agreed that, “Historically, the work value of feminised industries such as nursing has been undervalued.”
“The reasons are multifaceted, but a key reason is that they involve the exercise of caring or interpersonal skills that women were considered to have a natural capacity to perform which led to those skills not being expressly recognised, considered and valued.”
The IRC noted that in 1990, NSW RNs “were for the first time recognised as professionals and paid accordingly”.
“That change properly recognised the technical and professional skill of degree-qualified nurses and addressed a significant undervaluation to that point.
“However, neither then nor before or after, has any work value review expressly considered caring, communication and related interpersonal skills, skills which historically have been overlooked when valuing female-dominated occupations such as nursing (and which are considered ‘invisible skills’ as a result).
“Against that background, we consider it necessary to address the uncontested expert evidence that nurses and midwives perform invisible skills and that there is (at least) a real possibility that their work is undervalued for gender reasons.”
The IRC said it was given extensive evidence that established that caring and other interpersonal skills are not only integral to the work of nurses, but of high work value.
“We have determined to reset pay for nurses and midwives having express regard to those skills.”
“Further, following findings of the Fair Work Commission at a federal level in respect of gender-based undervaluation of enrolled nurses and assistants in nursing in aged care nursing, those classifications require higher increases than the increases for registered nurses to properly value their work and to ensure they are set at or above the federal minimum pay standard.”
