Aged Care Workers’ to Get a Well Deserved Pay Rise
Older people will be the ultimate winners from a landmark deal that will provide higher wages, better conditions and more rewarding careers for the nation’s 350,000 aged care workers.
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5 March 2013
Older people will be the ultimate winners from a landmark deal that will provide higher wages, better conditions and more rewarding careers for the nation’s 350,000 aged care workers.
As part of its Living Longer Living Better aged care reforms, the Australian Government announced that up to $1.2 billion would be provided to address workforce pressures.
Minister for Ageing Mark Butler said today that this funding will flow from July through a ‘Workforce Supplement’, delivering pay rises for aged care nurses, care workers and others in the aged care industry.
An additional 1% pay rise will be available above minimum annual wage increases or other wage rises negotiated through enterprise bargaining agreements for workers employed by aged care providers that meet the requirements of a Workforce Compact.
This means a personal care worker currently paid the award rate and who is employed by an aged care provider that meets the requirements would effectively see a pay rise of up to 18.7% over four years. Enrolled nurses would receive 25% higher pay and registered nurses 29.9% higher pay in the same situation.
“We know that most Australians who pursue a career in aged care do it for much more than the financial reward, but pay rises of that level are a big incentive to work in this growing industry,” Mr Butler said.
Mr Butler said the Workforce Supplement was part of the Addressing Workforce Pressures Initiative which would be delivered in two parts, through the Aged Care Workforce Compact and through an Aged Care Workforce Development Plan.
The Workforce Supplement will be paid to providers that meet the conditions of the Workforce Compact, which was developed in consultation with providers and unions. Providers will be required to pass the Supplement on as higher wages.
“The Compact is a key component of the Government’s $3.7 billion aged care reform package and delivers on our commitment to better pay and conditions for Australia’s aged care workers, who are the heart and soul of the aged care system,” Mr Butler said.
Mr Butler said the initiative was aimed at addressing workforce pressures with the aged care workforce needing to almost triple in size by 2050 to support Australia’s ageing population.
“A better paid, better skilled and better trained workforce will underpin a more responsive system that provides older Australians with quality care, when and where they need it.”
Mr Butler said workers employed by providers that meet the terms of the Compact will not only receive increased wages, but also enhanced training and education, and improved career pathways and development.
“The key aim of the Workforce Compact will be to improve the capacity of the aged care sector to attract and retain staff through higher wages, improved career structures, enhancing training and education opportunities, improved career development and workforce planning and better work practices.”
The second part of the Addressing Workforce Pressures Initiative is the Aged Care Workforce Development Plan, which will begin in mid-2013.
An expert advisory group will be established to focus on better ways to support the aged care workforce. This group will seek to ensure that – on top of wage increases – aged care workers get the other benefits, including improved career structures, better training and education and better work practices including lowering the high rate of workplace injuries in aged care.
Further information on the Workforce Compact is available on the Living Longer, Living Better website - (www.livinglongerlivingbetter.gov.au)
Details about Government programs to support the aged care workforce are on the Department of Health and Ageing website - (www.health.gov.au/agedcareworkforce)
For more information contact the minister’s office on 02 6277 7280
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