The 2020 Royal Commission into Aged Care recommended the Fair Work Commission undertake a Work Value Case to review and increase wages in the sector. Aged care nursing, personal care and other workers are often paid at very basic award levels. Current funding models prevent employers from changing this even when they want to. The sector cannot attract nor retain all the skilled staff that are needed to care for Australians in residential aged care and those using home care services.
In 2021 applications by the Health Services Union and the Nursing & Midwifery Federation were made to vary the Aged Care Award 2010 in relation to Minimum wages and Classification definitions across three Awards:
- Aged Care Award
- Nurses Award
- Social, Community, Home Care and Disability Services Industry Award
The Aged Care Work Value Case has been underway since April 2022 and is expected to conclude in September following final submissions from the Australian Government, Employer groups and Aged Care organisations. The Government indicated it supports a “meaningful increase”.
The former Morrison government paid Aged Care workers two payments of $400 each in early 2022 extending the three previous bonus payments of $600-800 each. These payments were intended to recognise and retain staff for the pandemic.
The Unions seek increases of 25 per cent to minimum rates. A determination by the Commission is expected some time after the hearings conclude.
In 2012 in the Equal Remuneration Case for the Social and Community sector, the Fair Work Commission awarded substantial increases, phased in over a 10 year period. The Gillard Government funded eligible employers to lift wages in the sector with assistance cordinated from the Commonwealth or some States conducting a similar review (e.g. Queensland).
Now, along with other Aged Care reforms being introduced, the expected wage increases will require substantial funding commitments if the sector is to survive the current adverse operating conditions. Then the recognition can be sustained that the (so far) under-valued staff deserve in caring for the complex needs of our older Australians. This is a national challenge we face with many competing demands for a debt-laden, post-pandemic public purse and a growing geriatric population.