Pay rises given to aged care workers could be “stepped out” over a period of time, Aged Care Minister Anika Wells says.
Wells was speaking from Brisbane during a visit by the Acting Prime Minister Richard Marles, where she said there was modelling on how much a wage increase would cost, but it was “hypothetical” until the fair work umpire handed down its decision on aged care workers’ pay.
She pointed to the community workers who were awarded a significant pay rise under the Rudd-Gillard government, which was “stepped out across nine years”.
“So the sequencing around that—there’s lots more work to do,” Wells told reporters on Tuesday.
“We’re preparing for all eventualities.”
Marles said a pay hike for aged care workers was one of the recommendations made by the royal commission into the sector, as well as an election promise.
“We’re asking people to look after our loved ones in the final years of their life,” he said.
“It is a really meaningful job, and it requires a meaningful wage increase.
“Right now, people are not being paid appropriately for the work that they are doing ... this is a matter of justice, it’s a matter of fairness for those who work in aged care.”
It follows the federal government making a submission to the Fair Work Commission advocating for a significant wage increase for workers.
The commission is determining whether to lift pay rates for the aged care sector, with personal care workers on a starting rate of $23.55 (US$16.47) per hour and qualified personal care workers earning $24.76.
The government has pledged to fund the pay increase based on the commission’s determination.
The submission to the commission on Monday was welcomed by the Health Services Union and the Australian Nursing and Midwifery Federation.
“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.”
Current award rates do not adequately reflect the value of aged care workers, ANMF federal secretary Annie Butler said.
The government’s submission said a 25 percent increase in wages could boost the labour supply in the sector by up to 10 per cent over the next five years.
But Treasury estimates such a rise would increase wages across the economy by less than one per cent, which could lead to a flow-on effect for similar areas.
“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 submission said.
