Better Pay bill may affect pay rise case

As the Fair Work Commission's aged care pay rise case moves to the second stage, government pressures rise after shocking report findings, and a controversial bill pushes forward in parliament.

Earlier this month, the Fair Work Commission made an interim decision to raise wages by 15 per cent for aged care workers, excluding indirect workers such as cleaners, kitchen staff and administrative workers.

While the government, unions and workers have called for a 25 per cent increase, the 'Secure Jobs, Better Pay' bill, which is currently before parliament, may put aged care workers in the position to push for even higher remunerations.

The Better Pay bill, introduced by employment minister Tony Burke in October, aims to boost paychecks for all Australians by introducing a multi-bargaining system.

If it passes in its current form, businesses such as aged care providers will have to negotiate with unions if workers are asking for better pay.

So, while the FWC's final decision would change the minimum wage for aged care workers, people can bargain for higher pay through the multi-bargaining system.

The Better Pay bill would also boost the umpire's powers to set minimum wages and amend the Fair Work Act, where the FWC's rulings must be free of assumptions based on gender.

Labor is pushing for the Better Pay bill to pass in the Senate with just seven days left before the parliament resigns for the year but is facing resistance from senators and the Greens. 

"There's a reason for urgency," Burke told ABC Radio.

"The pressure on parliament members to get across the detail is nothing compared with the immense pressure on households right now.

"The sooner we act, the sooner pay will go up."

But Business Council of Australia's chief Jennifer Westacott said an even more complex bargaining system would open the door to industrial chaos, strikes and people walking off their jobs.

"The way the bill is currently written will make things worse," she said.

"And importantly, these changes will not deliver much-needed wage rises.

"Make no mistake, the expansion of multi-employer bargaining will not increase wages, but it does open the door to more strikes and more disruption."

Westacott said the bargaining system will leave workers waiting even longer for pay increases while 'unions and lawyers squabble over who can even be at the table.'

 "We want low-paid people to earn more, and the awards system is the best place to do it," she said.

"We encourage the government to prioritise awards simplification rather than clogging the Fair Work Commission with complex multi-employer bargaining cases."

Last Tuesday, the FWC's pay rise case went before the court, where all unions and parties could attend the hearing using a Teams invite.

Australia's major unions, including the United Workers Union and ANMF, and joint employers, such as ACSA and Leading Age Services Australia, are involved in the high-profile case.

A decision was made to push forward the date by seven days by which parties can submit evidence supporting a wage increase for aged care workers.

After the hearings on the 13th of February 2023, the FWC will make final rulings on a pay rise for direct care staff.

While the umpire has said it will not raise wages for indirect staff due to 'unjustifiable work value reasons', the offer is not entirely off the table yet. 

If all involved unions and joint employers can come forward with an agreed-upon wage increase and more supporting evidence, the FWC said they'll reconsider.

"Anyone with knowledge of aged care knows lifestyle, laundry, cleaning, and catering are essential to delivering the quality care residents need," UWU chief Carolyn Smith said.

"It's a bitter pill for these workers that decisions on their pay rise have been put off for further consideration.

"During the two years the case has been on foot, these workers at the heart of the case have been working their guts out keeping aged care running during a once-in-a-lifetime pandemic."

While the case was being discussed, HSU chief Gerard Hayes took to the FWC's steps on 80 William Street East Sydney to announce findings from a disturbing survey about the aged care workforce.

Three out of four aged care workers say they'll walk off their job within six months unless they're offered a hefty pay rise, the 'Aged Care Snapshot' report found.

Ninety-one per cent of the aged care workforce said a 25 per cent wage increase was 'extremely important.'

The HSU surveyed close to 2000 workers, who said the sector is on the 'brink of collapse' and that working conditions are 'unbearable.'

"A full and comprehensive pay rise for the entire sector is beyond urgent," Hayes said.

"Aged care is on the verge of a mass resignation that will trigger the sector's collapse.

"This is not a problem that can be solved by phasing in a pay rise; we need an urgent injection of money into workers' bank accounts."

HSU's report underpinned the weight of the FWC's decision for an already crisis-ridden sector.

"Aged care workers cop abuse, pain and back-breaking strain, and they do some of society's most unpleasant and demanding work," Hayes said.

"And until now, they have been paid three-fifths of bugger all with pathetic job security.

"Enough is enough; the time for platitudes and reviews has passed."

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