The big news this week has been around the Health Services Union (HSU) and its bid to boost the pay packets of over 200,000 aged care workers through a landmark case before Australia’s industrial tribunal.
Currently, personal carers starting out in the sector earn $21.96 per hour – with the average carer retiring with just $18,000 in superannuation.
While staff and unions can negotiate for higher wages under enterprise bargaining agreements, many providers pay award rates.
$2.3 billion needed to foot bill for wage rise
If the claim succeeds, this would see wages for all workers including personal carers, activities officers, catering, cleaning, and administration workers lifted from $23.09 to $28.86 an hour – around $5 an hour.
Doing some simple calculations based on a 40-hour week for workers, that’s around $2.3 billion.
It sounds like a lot of money.
But the HSU says the cash can be found.
In September, the union released economic modelling which showed increasing the Medicare levy from 2% to 2.65% would raise $20.4 billion over four years.
This money could then be used to fund pay rises for workers, an extra 59,000 aged care jobs and provide almost 90 minutes of additional resident care per day, they added.
Four in ten aged care workers planning to leave in next five years
HSU President Gerard Hayes (pictured above) says the wage rises are needed because the current pay rates do not reflect the skills or increasing workloads of aged care staff.
“Aged care workers are skilled,” he said. “They provide care and support to our most vulnerable, to residents enduring episodes of sadness and at times anger. They should be recognised and paid for their skills.”
“This pay rise is an issue of justice, but it also goes to the sustainability of the system. Four in ten aged care workers intend to leave the sector within the next five years, because they are at breaking point. A workforce crisis is coming unless we see a significant boost to pay.”
The HSU claim also calls for built-in career paths and recognition of specialist carers in areas like dementia or palliative care to provide workers with better professional development.
Government could intervene early to increase wages
Fair Work cases do take time to resolve however – usually between 18 months and two years.
Prime Minister Scott Morrison had turned down the union’s idea of raising the Medicare levy to boost aged care wages – but he has promised a substantial policy response to the Royal Commission’s Final Report, due at the end of February 2021.
We hope this response includes better recognition of our aged care workers and the valuable role they play – and acknowledges the fact that if we want more people to care for our Mums and Dads, higher wages are part of the solution.
