Win for Aged Care workers

Tuesday 02 Jul 2013

Under its Living Longer, Living Better reform package the Federal Government has committed to lifting the wages of the nation's 350,000 aged care workers with a $1.2 billion funding boost over four years.  In the face of a looming crisis in aged care staffing the initiative aims to attract workers to the sector and to keep them.

Under the deal, aged care providers that meet the conditions of a "workforce compact" will receive a workforce supplement, which they will be required to pass on in the form of higher wages from July this year.  The money will be used to add 1% to the annual wage increases and enterprise bargaining agreements already negotiated at the workplace.

Aged care workers will only receive the benefits of the workforce supplement if they work for an employer that applies for the supplement and is deemed eligible.

In order to receive the supplement the employer must:

  • Grant all aged care employees minimum annual wage increase of 2.75%, or the Fair Work Commission minimum increase, whichever is the greater;
  • Introduce phased wage increases over and above the relevant award rates, that is 1.5% in 2013/14, 3% in 2014/15, 3% in 2015/16 and 3% in 2016/17;
  • Commit to passing the supplement on in full to the aged care workforce, delivering an additional 1% annual wage increase from 2013/14 to 2015/16, and 0.5% in 2016/17.

HSUWA is embarking on a campaign to include the benefits of the workforce supplement in replacement of EBAs in the aged care sector.

We urge all members to get involved in the EBA process and tell us what you want from your agreements.

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