The Fair Work Commission has opened its hearing into aged care worker pay, with unions pushing for a 25 per cent increase across the board – but what will it mean?
Right now, entry-level personal care workers make as little as $21.96 per hour, a figure unfavourably compared by Health Services Union National President Gerard Hayes with the earnings of Bunnings Warehouse and Woolworths employees.
“It’s one thing in my mind to, you know, drop a can when you’re stacking shelves in Woolies. It’s another thing to drop a person, fracture their hip and they die,” he told the Commission.
The unions want to see wages rise to, on average, $29 per hour – an hourly raise of between $5.40 and $7.20.
Both unions and aged care peak bodies have agreed that aged care workers are “historically undervalued”, and should be paid more for the vital services they provide to older Australians – not just because they deserve it, but to help attracting and retaining skilled staff to make sure Mum and Dad receive the care they need.
“Aged care providers are deeply committed to ensuring the quality and safety of care services being delivered. This cannot be achieved without adequate funding of the sector and appropriate remuneration for the aged care workforce.
“In order to achieve this, the government must commit to fully funding the uplift in award wages to ensure a sustainable workforce. Without this commitment, the viability of the aged care sector is at significant risk,” said UnitingCare National Director Claerwen Little in one submission to the FWC.
Who pays?
The FWC has warned that it won’t take into account the Government’s capability to afford a wage rise when it hands down its final decision (a decision Labor has promised to support and fully fund, if it wins the Federal Election in three weeks’ time).
While a six per cent rise per year over four years is more likely than the full 25 per cent in one go, the Federal Government – whoever it is come July, when the decision is expected to be handed down – will still need to pay for it, with some estimates that it could cost up to $18 billion over four years.
As both parties have pledged no new taxes, the only solution may be introducing aged care co-contributions, with wealthier people who have the means being required to pay for their own care in whole or in part.
Watch this space – because this issue isn’t going away.
