Potential $2 billion aged care wage rise 'betrayal'

Australian Nursing and Midwifery Foundation (ANMF), Victorian Branch, has launched disputes in the Fair Work Commission (FWC) against eight private aged care employers refusing to pass all federal funding they receive for wage increases on to their nurses and personal care workers.

On 21 February, the Fair Work Commission (FWC) announced a 15% award rate increase from 30 June for aged care nurses (residential and home care) and carers. This is the FWC’s stage one response to ANMF’s national aged care work value case. ANMF is seeking a 25% increase.

The federal government has committed to fully funding the wage increases and on-costs.

ANMF is seeking a safeguard clause in the enterprise agreements requiring the provider to disclose the amount of taxpayer funding received for the purpose of wage increases, and obliging them to pass it all on to staff.

Providers’ bargaining representatives have told ANMF they are waiting to see if there are any ‘rules’ that legally require employers to pass on the entire funding amount.

ANMF said Clare Dewan and Associates, representing many of the aged care providers, has responded to the dispute application by threatening to cancel enterprise agreements and move staff wages and entitlements to the awards. This would mean lower wages, and nurses and carers would lose up to 11 days of additional personal leave, paid parental leave and other allowances and entitlements.

The FWC conciliation hearing concerns ANMF and the following aged care employers:

• Lifeview (four facilities)
• mecwacare (15 facilities)
• Villa Maria Catholic Homes (13 facilities)
• VMCH Corpus Christie Aged Care Residence
• Deloraine Greensborough Aged Care Facility
• RALAC (Ringwood Area Lions Aged Care)
• Westmont Aged Care Services
• Cobram Regional Care (formerly Ottrey Homes)
   

ANMF (Vic Branch) Assistant Secretary Paul Gilbert said, “The Aged Care Royal Commission found that low wages and high workloads were key factors in poor outcomes for aged care residents.”

He continued to express concerns that aged care employers’ representatives were seeking to ignore the final report and recommendations.

ANMF (Vic Branch) understands the federal government will fund all aged care providers for a blanket 15% increase even if they are paying above award rates now.

“Without a mechanism making it mandatory to pass on all of the taxpayers’ targeted pay rise funding, providers will have the opportunity to pocket the difference between their EBA rate and the award rate,” Gilbert said.

“It will be an unforgiveable betrayal if aged care providers receive nearly $2 billion targeted to pay higher wages to nurses and carers, then fail to pass on every single cent to their staff.

“We’re calling on the Albanese government to enforce a mechanism to ensure all funding is used for nurses’ and carers’ pay rises and not funnelled into operational costs or profit,” he said.

In their final report, aged care commissioners Tony Pagone and Lynelle Briggs noted that previous federal government attempts to fund aged care nurses’ and carers’ pay rises had not resulted in increased wages.

Over the past 30 years federal governments have given private aged care providers almost $2.5 billion specifically to increase wages: the Keating government provided $50 million in 1996; the Howard government provided $221.1 million in 2002 and $877 million in 2004; the Gillard government provided $1.2 billion in 2013.

In evidence to the aged care royal commission in October 2019, Gilbert said, “The Commonwealth has increased subsidies to aged care to improve wages, and not once did that deliver a dollar in improved wages.”

Award rate increase

Under the FWC’s decision to increase award rates by 15%, the award rates will increase to:

Personal Care Worker Grade 1: $27.11 per hour, up from $23.57

Personal Care Worker Grade 2: $28.14 per hour, up from $24.47 (holds a relevant Certificate 3 qualification or possesses equivalent knowledge and skills)

Enrolled Nurse (with 4 years’ experience): $30.51 per hour, up from $26.53

Registered Nurse Grade 2 with 5 years’ experience: $36.34 per hour, up from $24.47

Nurse Unit Manager or similar: $43.77 per hour, up from $38.06

The award classification examples above may differ slightly between employers as set out in the enterprise agreement. However, the award rate must be paid as a minimum.

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