On 4 November 2022, the Fair Work Commission (FWC) released the latest update on the case for a wage increase for residential aged care workers.

Background on the Case

Our previous articles: Overview of the Fair Work Commission Case and Will There Be a Wage Increase for Residential Aged Care Workers? outline the FWC case, the current wages of aged care workers and the Government’s views on the case. In short, the Health Care Services Union and the Australian and Midwifery Federation brought a case before the FWC to seek to vary several Awards to increase pay for various categories of aged care workers by 25 per cent.

November Update

The FWC released a Summary of Decision. Under the heading “An Interim Increase”, the decision states that a 15 per cent wage increase for direct care workers in the Aged Care and SCHADS Awards and nurses working in aged care who fall under the Nurses Award, an increase in wages was “Plainly justified by work value reasons”.

The ruling outlined that existing pay did not properly compensate industry workers. This ruling will affect over 180,000 aged care nurses, assistants in nursing (AINs), personal care staff and home care workers.

The FWC also ruled that work in feminised industries, such as aged care, is undervalued due to gender-based undervaluation. The FWC noted that gender-based undervaluation occurs when “The skill level of occupations, work or tasks is influenced by subjective notions about gender and gender roles in society. Skills of the job occupant are discounted or overlooked because of gender.”

The FWC also noted that this ruling would not conclude their consideration for a 25 per cent increase for employees, specifically those in administrative, kitchen, cleaning, and other support roles. The FWC further stated “Nor are we suggesting the 15 per cent interim increase necessarily exhausts the extent of the increase justified by work value reasons in respect of direct care workers.”

Health Services Union president Gerard Hayes described the FWC ruling as “a reasonable start,” but added that, “Fifteen per cent is a down payment but nobody should be mistaken. This will not fix the crisis. We still have massive unfinished business in aged care.” (See Aged Care Insite).

What Next?

Stage 2 of proceedings will begin on Tuesday 22 November where stakeholders will be given the opportunity to make further submissions and address the timeline of the wage increases. The wage adjustments for staff in indirect care roles will be addressed at Stage 3 of the proceedings.

The Australian Financial Review Treasury predictions estimate that the 25 per cent increase in wages for aged care workers could increase the workforce numbers by between five and 10 per cent, adding approximately 36,000 workers to the sector. Inside Ageing’s article on the Fair Work Commission Ruling explains how the wage increase ruling is an important step for the sector to work towards a projected 70 per cent increase in numbers of direct care workers needed from current levels by 2050.