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The Fair Work Commission is set to introduce an interim wage increase of 15% for Australian nurses and care workers effective 30 June 2023.
© Danielle Robertson Consulting Pty Ltd t/as DR Care Solutions
The Fair Work Commission has announced its decision to introduce an interim wage increase of 15% for Australian nurses and care workers effective 30 June 2023[1].
Note the Fair Work Commission’s use of the word “interim”. I’ll come to that later.
If you haven’t been following the Fair Work Commission’s “Work Value Case – Aged Care Industry”[1] then take a look at one of my prior blogs[2] for some background.
Brief background to the “Work Value Case – Aged Care Industry”
In November 2020, the Health Services Union applied to the Fair Work Commission for a 25% increase in the aged care worker minimum wage.
This application was later supported by submissions from related unions and the findings of the 2021 Final Report of the Royal Commission into Aged Care Quality and Safety.
In August 2022, the Aged Care Minister of the new Labour Government, The Hon Anika Wells MP, made a submission to the Fair Work Commission seeking “a meaningful and significant increase” in wages for these workers; saying the decision on the percentage increase required was for the Fair Work Commission to decide.
The staged decision process
The process sees the Fair Work Commission consulting and negotiating with vested stakeholders – the unions, employer groups and the Commonwealth Government – and releasing its decisions in “stages”.
Its Stage 1 decision declared that the evidence given made a clear case for an interim wage increase of 15% and that:
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The current awards[3] “do not properly compensate workers engaged in the provision of direct care to aged persons, in either residential facilities or in-home settings, for the value of the work performed”, and
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An increase in wages for Head Chefs/Cooks in the aged care sector “is justified for work value reasons.”
Stakeholders were then invited to give feedback on the Stage 1 decision and the timing of the interim increase.
The Stage 2 decision[4], which came out last week, announced that the interim increase of the minimum wage 15% comes into effect on 30 June 2023 and applies to employees who are:
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Direct care workers under the Awards
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Head Chefs/Cooks under the Aged Care Award (aged care employee level 4-7 provided the employee is the most senior chef or cook engaged in a facility), and
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Recreational Activities Officers/Lifestyle Officers under the Aged Care Award.
So if you work in the sector and are paid the minimum wage, hang in there, a wage rise of 15% is coming mid-year!
How many more “stages” will there be?
It’s a good question. In its Stage 1 decision, the Fair Work Commission made it clear that it was still considering union requests. To quote directly:
“The Full Bench noted that determination of an interim increase for direct aged care workers would not conclude its consideration of the unions’ claim for a 25 per cent increase for other employees, namely administrative and support aged care employees, nor did it necessarily exhaust the extent of the increase justified by work value reasons in respect of direct aged care workers.”
What does it mean to care recipients?
It could only mean an increase in the hourly rates paid for care workers. This may come directly out of your pocket or the Commonwealth Government could save the day and increase its subsidy for the care you receive.
It will see some aged care employers work very hard to balance their books. They need to:
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Accommodate a 15% increase in the minimum wages by 30 June 2023.
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Maintain a management fee cap of 15% and care plan management fee cap of 20% on Home Care Packages, as of 1 January 2023[5].
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Keep their hourly care fee rates competitive or lose business.
It will be a juggle. Fingers-crossed the Commonwealth Government will save the day!
Needing care assistance for your loved one? Please feel free to call me, Danielle Robertson, at any time for an initial discussion on how to set up the right care, support and assistance at the right time and in the right place.
Resources
[1] Australian Government Fair Work Commission - Decisions & Statements For The Work Value Case
[2] DR Care Solutions - Aged Care Workers: Attracting Workers For Aged Care Reforms
[3] Aged Care Award 2010, the Nurses Award 2020 and the Social, Community, Home Care and Disability Services Award 2010
[4] Australian Government Fair Work Commission - Decision Signed
[5] Australian Government Department of Health and Aged Care - Home Care Packages Pricing Update
