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How 200,000 Aussie workers are in for a big pay rise – but taxpayers will be footing the bill
- Health Services Union is fighting for a 25% pay increase for aged care workers
- Federal government has made a submission backing an unspecified pay rise
- The Prime Minister has admitted that taxpayers will have to fund the increase
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Some 200,000 aged care workers are expecting a huge pay rise after the Albanese government backed union calls for a big wage increase.
The Health Services Union is fighting for a 25 per cent increase for personal carers, activities officers, caterers, cleaners and administrators in the aged care sector.
The move would lift the minimum wage of a personal care worker from $23.09 to $28.86 an hour.
On Monday the Albanese government made a submission to the Fair Work Commission supporting a wage boost without naming a figure.
The Prime Minister has admitted that taxpayers will have to fund the increase to stop struggling private care providers from going bust due to increased wage bills.
Some 200,000 aged care workers are expecting a huge pay rise after the Albanese government backed union calls for a big wage increase
Aged Care Minister Anika Wells believes a wage hike is needed to ease workforce shortages and reduce the gender pay gap as most aged care workers are women.
‘We need more staff in aged care and a pay rise is the start of ensuring workers are rewarded for the crucial roles they play,’ she said.
‘One of the main causes of the gender pay gap is low pay and poor conditions in care sectors like aged care, where the majority of workers are women.
‘Increasing wages in aged care is essential to ensuring that men and women are paid equally.’
The Health Services Union is fighting for a 25 per cent increase for personal carers, activities officers, caterers, cleaners and administrators in the aged care sector
The government’s submission was welcomed by the Health Services Union and the Australian Nursing and Midwifery Federation who are fighting the case.
‘After a decade of neglect the new government’s recognition of the aged care workforce is a shot in the arm,’ HSU national president Gerard Hayes said.
‘Older Australians will not get the care they deserve until we can attract and retain a workforce to look after them. The government has understood this and taken action.’
ANMF federal secretary Annie Butler said current award rates do not adequately reflect the value of aged care workers.
‘The nature of the work required across the aged care sector has developed considerably over the years and become significantly more complex, requiring greater skill and responsibility under increasingly difficult conditions, with a diminishing workforce,’ she said.
While unions are asking for a 25 per cent rise for aged care workers, Acting Prime Minister Richard Marles said the exact number is for the independent commission to decide.
He believes a wage boost could ease staff shortages.
‘We’ve got a real issue in retaining people in aged care and encouraging people to work in aged care and if we want to do that going forward people need to be paid a proper wage,’ he told Brisbane radio station 4BC on Monday.
‘That requires a meaningful increase in what they’re currently paid.’
While unions are asking for a 25 per cent rise for aged care workers, Acting Prime Minister Richard Marles said the exact number is for the independent commission to decide (stock image)
The government’s submission said a 25 per cent increase to wages could boost the labour supply in the sector by up to 10 per cent over the next five years.
Treasury estimates that such a rise would not fuel inflation – which is which is already at 6.1 per cent – as long as it is contained to the aged care workforce.
‘In the current economic environment of above-target inflation and persistent global price shocks, there would be risks to inflation expectations if similar wage rises are demanded in associated industries,’ the government’s submission said.
An outcome is expected in early 2023.
With AAP