Wage increase for low paid aged care workers

Low paid aged care workers will have almost $30 more in their pockets each week if the Australian Council of Trade Union (ACTU) claim to increase the national minimum wage, currently before Fair Work Australia, proves successful.

The increase, which is expected to come into effect on Thursday 1 July, will impact upon around 1.4 million employees, including both union and non-union award dependent aged care workers.

Despite being the poorest workers in Australia, minimum award wage earners did not receive a wage increase last year due to a global financial crisis wage freeze. 

The ACTU said that a resurgent Australian economy with forecasts of strong GDP and jobs growth over the next two years makes the case for a decent rise to minimum wages even more compelling.

ACTU secretary, Jeff Lawrence, said new economic forecasts in last week’s Federal Budget had strengthened unions’ claim and undermined arguments from employer groups for a further wage freeze.

“It is appalling that millions of Australians were forced to suffer a wage freeze for more than 18 months given the strength of the economy,” Mr Lawrence said. “Last week’s Budget shows the Australian economy is in good shape and will improve over the next 12 months.”

Minimum wage workers have not had a pay rise since October 2008. The ACTU estimates that, since then, their wages have gone backwards by up to $19.50 in real terms.

Mr Lawrence said that the claim was framed to be responsible and reasonable, without placing excessive pressure on business costs.

Liquor, Hospitality and Miscellaneous Union (LHMU) assistant national secretary, Sue Lines, said that if the claim was successful, more than 55,000 members will be set to benefit.

This will include low-paid aged care enrolled nurses, carers, cleaners, cooks, kitchen workers, drivers and gardeners. 

“Award dependaent workers last year got a zero increase so it will be more than 18 months for them to get an increase now,” said Ms Lines. 

“If you look at the time that they have gone without an increase, $27 isn’t going to cover the cost of living increases that low-paid workers have had to bear.”

“We will put a good argument forward for why… They should certainly get what we are seeking on their behalf.

She said that the increase “would go someway” towards helping low-paid workers cope with increased costs.

“These are the workers who bore the brunt of the global financial crisis and they need to be compensated for that. It is a fair claim.”

Currently the federal minimum wage weighs in at $543.78 a week or $14.31 an hour.  The review, conducted by a minimum wage panel, will be completed by Wednesday 30 June.