FWC rules 15 pay rise for lifestyle staff and chefs

The Fair Work Commission has ruled a 15 per cent pay rise for nearly all aged care workers, including personal care and recreational staff, effective in full from June 30.

The umpire's decision this Tuesday rebuked the government's plan to pay for the wage raise over two years because of budget concerns.

Aged care and worker unions have applauded the FWC's expanded coverage of chefs, recreational workers and personal care staff.

"The wage increase indicates that we're working towards a better future," Health Services Union President Gerard Hayes told Aged Care Insite.

"To prevent aged care from collapsing, every link in the chain must be strengthened. 

"There's no point lifting wages for direct care workers if large chunks of the workforce miss out."

In November last year, the FWC made an interim decision to increase pay for direct aged care workers but exclude 'indirect workers' such as chefs.

Industry unions, including ACCPA, opposed the exemption of indirect workers, saying that 'everyone involved in aged care is a direct aged care worker.'

Earlier this month, aged care staff from Sydney, Brisbane, Adelaide and Perth held protests outside of capital city Commissions pushing for a wage boost for all aged care workers.

The protesters submitted over a hundred stories outlining their struggles to the FWC.

The commission later agreed to raise wages for all staff on the aged care, nurse, community, home care and disability award scales.

The pay rise is expected to affect over 300,000 Australian workers.

ANMF Federal Secretary Annie Butler called the ruling 'a great win for the aged care sector'.

"This is a step further towards genuine recognition of their true value," she said.

"It recognises the severe undervaluation of aged care workers under the current award system.

"It also acknowledges the rising cost of living pressures these workers continue to face whilst receiving chronically low wages."

The newly-appointed deputy chair of ACWIC, Graeme Prior, said it signified progress towards improving the aged care sector.

"It is wonderful to see that more aged care workers will get a timely wage increase to acknowledge the value of their essential work," Graeme said.

"I encourage the Commonwealth to move quickly to support the funding of the wage rise in full from June 30."

While ACCPA welcomed the decision, it raised significant concerns about the misalignment of the FWC's decision with the government's May budget.

ACCPA chief Tom Symondson said higher salaries were 'sorely needed, but so is matched funding.'

"As we have clearly stated, time and again, our sector is in financial crisis and cannot afford unfunded pay rises of this scale," Symondson said.

"With seven out of every ten aged care providers already losing an average of $21 per resident per day, the FWC's decision changes everything."

While the Albanese government had promised to pay for the pay rise, it admitted last December it could only fund the boost over a two-year period.

Aged care workers would receive a 10 per cent increase in July this year and the remaining 5 per cent in July next.

Nevertheless, the FWC overruled the staggered approach on Tuesday, pushing the deadline forward to June 30 to 'be paid in full.'

Treasurer Jim Chalmers responded to the move by stating that 'future aged-care costs are an area of concern for the upcoming federal budget.'

Prime minister Anthony Albanese hinted yesterday that the government might need to increase taxes to cough up the aged care expenses.

"Now that the FWC has decided to implement the pay rise in one go, it's critical that the government revisits its position on funding," Symondson said.

"We have publicly supported the need for significant pay-rises for our workforce and fully supported the government's 2022 election commitment to fund them. 

"However, this must not be at the cost of our sector's ability to deliver care to older Australians."

The United Workers Union (UWU) said the FWC also needed to decide on a wage boost for non-care roles in the industry, such as cleaners and food services attendants.

UWU aged care director Carolyn Smith also planned to continue to push for a 25 per cent increase, similar to ACCPA, ACWIC, ANMF and HSU.

"It's heartening that the government and the commission are beginning to listen to aged care workers after years of neglect," Smith said.

"Today's announcement of a 15 per cent boost in July will be music to the ears of many in the aged care workforce.

"We just need the decision makers to take that one extra step to get up to 25 per cent and ensure everyone working in aged care benefits."

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