The battle for higher wages begins
Discussions to increase the wages of residential aged care workers will begin this week between the LHMU and employer groups, and potentially the federal government.
The federal government could be called to the bargaining table as a third party to negotiate increases for residential aged care workers, if discussions between employer groups and the Liquor, Hospitality, Miscellaneous Union (LHMU), which start this week, progress favourably.
An application to increase the wage of aged care workers using the new low paid bargaining powers of the Fair Work Act was lodged by the union yesterday, marking the beginning of what could be a very long process of negotiation.
The bargaining application represents a landmark move by the union, with residential aged care members set to become the first low-paid employee group to ever seek a wage increase through the Fair Work Act.
LHMU National Secretary, Louise Tarrant said the application will examine the “systemic problems of low wages in the sector.”
Under the powers of the act, the application “allows us to bring multiple employers to the bargaining table, not just single employers. It also allows us to bring important third parties to table. In this sector, it’s the funder- the federal government”.
The main aim of negotiations will be to achieve pay increases worth $8 to $10 per hour so that residential aged care workers come on par with equivalent positions in male dominated industries.
Ms Tarrant is hopeful that employers recognise and address the need to increase wages.
“We are meeting with a range of employers around the country over the next few days.
“Many employers see that wages and staff levels too low. Many are also hamstrung because of levels of funding. We are hopeful that this will be a positive process for all parties to address positive aged care outcomes.”
CEO of Aged Care Association Australia (ACAA), Rod Young commends the quest for higher wages but emphasises the government’s role in potentially footing part of the bill because employers can not afford to do so.
“The reality is that employers are already paying 70 per cent of income into wages so if you don’t get more money from the government there is no way you can be paying more than what you are able to feasibly pay in wages,” Mr Young said.
“If we can’t pay because we are restricted on what we can charge and what the consumer is prepared to pay, then you can’t get blood out of a stone.
“If there is to be any decision regarding higher levels of pay then the Commonwealth government has to be there, as they are the only ones who can afford to pay.”
The application only covers residential aged care workers in five states and territories (Queensland, Northern Territory, South Australia, Western Australia and the ACT) as the Health Services Union, for historical reasons, covers NSW, Tasmania and Victoria.
Negotiations will affect 300 major employers including major church organisations, RSL Australia, Aegis, Domain Principal Group and Regis Group (Macquarie Bank).
