Last week, the Government delivered a $17.7 billion funding package designed to transform Australia’s aged care system over the next four years.
The funding boost was a welcome one – but one of the recommendations not taken up was to increase award wages for aged care workers, who are among some of the lowest paid workers in Australia.
The entry level hourly rate for an aged care worker is $21.09 – compare this to the entry level hourly rate of $21.78 for stacking shelves at Woolworths.
Low pay a deterrent
The Aged Care Workforce Industry Council (ACWIC) says lower pay was given as the main reason that people didn’t want to work in the sector in response to their ‘Bring Your Thing’ social media campaign which launched earlier this year to attract more workers.
Yet it is estimated Australia will need to grow its aged care workforce from around 360,000 to over one million by 2050. This is around 23,000 new workers a year, not accounting for retirement and people leaving the sector.
With around one-third of Australia’s aged care workers born overseas – and immigration unlikely to restart for at least 12 months – this is a big ask.
Fair Work Commission looking at union case
There is potential for aged care workers to be awarded a pay increase soon.
The Fair Work Commission is set to hear a case brought by the Health Services Union (HSU) in October for a 25 per cent minimum increase for aged care workers – an estimated cost of around $3.5 billion a year.
Former Royal Commissioner Lynelle Briggs AO (pictured right) urged the sector to support the claim in an address this week.
“Unless remuneration is increased, the sector will continue to struggle to find an adequate workforce,” she said.
Government not supporting wage
increases yet
But wages make up 70 per cent and more of providers’ costs – and there is very little capacity in the current system to foot the bill.
While the Government’s $17.7 billion package should help providers’ bottom lines, most of the money won’t start flowing for two years.
The Government has also signalled this week that it won’t support major minimum wage increases until the economy is fully recovered.
The Attorney-General’s Department told the FWC on Wednesday: “Given the economic uncertainty, the Government maintains that the expert panel should adopt a cautious approach.”
So, it appears the issue of wages will continue to challenge both the Government and the sector for the foreseeable future.
Respect for the job
It is important however to remember that attracting and retaining quality people to care for our Mums and Dads isn’t just about the money – although it is a key part.
The Aged Care Royal Commission heard how New Zealand’s historic equal pay settlement in 2017 – which saw 55,000 low-paid staff receive pay rises between 15 and 50 per cent – didn’t help to attract and retain workers – because the community perception of aged care work also failed to shift.
The Government has committed another $9.8 million to extend the national recruitment campaign for the aged care workforce.
We hope they also consider how to bring the people – with passion – into the sector and how they could be better remunerated in the future.
