IRT CEO resignation marred by shock pay rise allegations

Aged care provider IRT is at the centre of serious allegations that it has failed to pass on government funded pay rises to its nurses — with the accusations coinciding with Chief Executive Officer Patrick Reid’s resignation.

Pay rise refusal allegations 

On Friday, the NSW Nurses and Midwives’ Association (NSWNMA) said IRT has not passed on government funded pay rises resulting from the Fair Work Commission Aged Care Work Value Case decision

NSWNMA also claimed that IRT has failed to commit to the additional increases for registered and enrolled nurses that are slated for October 2025 and August 2026.

“It’s deeply disappointing to see not-for-profit provider IRT refusing to pass on pay increases to their incredibly hardworking nurses and carers,” NSWNMA General Secretary Shaye Candish said.

“It is our expectation that the federal government’s funding will be passed on in full to workers following the Fair Work Commission’s ruling which highlighted the historic undervaluing of the female-dominated care industry.

“As part of the March tranche of funding, RNs and ENs across the country are receiving up to $6 extra an hour, but IRT employees are missing out. The October increase is also at risk of not being delivered to our members, with IRT refusing to commit to it.”

However, in a statement provided to Hello Leaders, IRT said it has delivered all Work Value and Wage Case decision increases, using full government funding and even adding its own, to all staff since July 2023. This includes an increase in January ranging from 2% to 11.5% across all roles within its enterprise agreement.

IRT said the most recent increase accounted for adjustments according to new role classifications and that it satisfied the requirements of the Department of Health and Aged Care’s Guidance regarding funding delivery.

“IRT had to contribute its own funds to apply the increase. Funds delivered to us from the government are based on a calculation of $8.73 per resident per occupancy hours per day. Based on us having 1,662 residents at the time of the calculation, the amount delivered from the government was just under $5 million,” its statement explained.

“This is because the funding doesn’t include the added cost of other entitlements such as annual leave payments, shift allowances and overtime, so the total cost of delivering the increase was approximately $8.8 million, which resulted in IRT contributing approximately $3.8 million of its own funds.”

The provider, which operates across residential care, retirement living and home care, said it pays all staff, including nurses, at above-award rates and is committed to maintaining its position in the top ten aged care providers when it comes to pay.

As an example, it said that registered nurse pay rates range from $42.68 to $54.51, while the modern award rates for the same registered nurses range from $35.41 to $40.91.

These wages reflect a total increase of between 18% and 27% in the 18 months since July 2023.

“IRT has addressed the requirements and intent of the Work Value and Wage Case decisions which has been to ensure that people in defined aged care roles, according to the relevant Awards, are paid at the correct rates and in recognition of their value,” the organisation added.

“IRT values all roles and the people that perform the associated duties to provide care to our residents and customers. For this reason IRT also delivered additional increases to some roles that were not recognised by the Work Value decision in the same way as others.”

Staff will be voting on a new enterprise agreement in the coming weeks. If approved, all staff will receive another 2.5% increase from July this year.

Meanwhile, NSWNMA called on IRT to ‘do the right thing’ and ensure nurses and carers receive the pay they deserve. 

“Residents would want their nurses and care staff to be compensated for the incredible work they do. Failure to pass on these increases are likely to impact IRT’s ability to attract and retain nurses and care staff and meet mandatory care minutes. This is not in the interests of the residents in this service,” Ms Candish said.

NSWNMA said it is not aware of any other organisations refusing to pass on government-funded pay rises. 

The end of an era

The allegations from NSWNMA landed just as IRT announced Mr Reid resignation to pursue ‘the next chapter of his career’ in a similar leadership role at another community services organisation. 

IRT did not name the organisation, however, stated that it is regarded as a competitor, meaning he was required to step away from day to day duties. 

Ross Gallagher, IRT’s Executive General Manager Home Care and Retirement Living, has been named Interim CEO until a permanent appointment is made.

In a LinkedIn post, Mr Reid said IRT is in ‘great hands with Ross Gallagher taking the helm’. “It’s a truly special organisation—made so by the passion and commitment of its people. It’s been an honour to be their custodian, and I hand over the baton with pride and gratitude,” Mr Reid added.

IRT Chair Peter Fitzgerald also thanked Mr Reid for his loyalty and leadership during a transformative eight-year tenure. 

“Patrick’s leadership has been outstanding. From navigating the complexities of the Royal Commission and the implementation of the Aged Care Quality Standards, to guiding us through bushfires, floods and a global pandemic — his impact has been significant and lasting,” Mr Fitzgerald said. 

“He leaves with our gratitude and best wishes for the next chapter of his career.”

Mr Reid’s LinkedIn post is filled with warm wishes for the passionate aged care leader, with many sector peers highlighting his wonderful legacy and achievements.