More time needed: Peak body seeks aged care pay rise delay
Published on 13 November 2024 (Last updated on 15 November 2024)
The Aged & Community Care Providers Association (ACCPA) says the sector needs more time to prepare for the upcoming aged care pay rise. It has called on the Fair Work Commission to delay changes by four months, labelling the current transition period of less than two months ‘entirely inadequate’.
In their submission as Joint Employers, ACCPA and ABI said the proposed variations to the minimum rates and classification of the Nurses Award attract ‘complexity’ and require careful consideration before any final determination.
They said the same complexity also means that aged residential and home care service providers need adequate time to prepare for implementation and commencement of changes.
After reviewing the proposed changes the Joint Employers said they can no longer support the Fair Work Commission’s (FWC) operative date of January 1 2025.
Quick hits
- In March, the FWC finalised its decision on Stage 3 of the Aged Care Work Value Case: direct care workers (personal care workers and assistants in nursing) would receive an additional pay rise of up to 13.5%
- A selection of indirect care workers would also receive a pay rise, with those interacting with residents rewarded more (up to 7%) than their colleagues (up to 3%)
- In response to the Government’s request to stagger the pay rise – which it will fully fund – the FWC said its provisional view would be for wages to be phased in over three tranches from January 2025 to August 2026
However, this initial proposal is no longer suitable according to the Joint Employers, who said an additional four months of preparation time will ensure all steps and necessary communications are made and received before any changes are made.
“The proposed period of less than two months would present an onerous and insurmountable deadline that aged care providers will not be able to meet, especially given that they are also working towards the implementation of the award changes for non-nursing classifications from 1 January 2025,” the submission stated.
“For the reasons set out in this submission, aged care providers will require a minimum of 4 months from the publication of a final determination.
“Provided that adequate time is provided in advance of the operative date, the phasing-in arrangements proposed for 1 October 2025 and 1 August 2026 could be maintained.”
The Joint Employers believe this is the most appropriate approach given the no final decision and final determination was published before November 11.
“Due to the passage of time, the circumstances that existed when initial support was advanced for an operative date that aligned with the Stage 3 – Aged Care work value increases no longer exist,” they said via their statement.
“A position of support was previously confirmed at the Final Hearing on 19 September 2024. The timing of the Final Hearing is relevant because it was:
(a) at least 3 months prior to the proposed operative date;
(b) conducted prior to consideration of any draft determination; and
(c) conducted prior to consideration of any provisional views regarding a restructure of the classifications in the Nurses Award and any transitional arrangements.”
The Federal Government has updated AN-ACC prices to fund these higher wages, however, the Joint Employers would like to see more communication regarding all details linked to the new classification structures.
Both ACCPA and ABI supported the FWC’s provisional views on minimum rates and classification structure that would align many pay rates for qualified aged care nurses.
More details on those exact pay rates can be found in the FWC Aged Care Award decision and determination documents.
With less than two months to go until the provisional implementation date of January 1, the Joint Employers said it would be an ‘onerous and insurmountable deadline’ for aged care providers. They said too many unanswered questions remain.
“Having now reviewed the proposed changes to the Nurses Award, aged care providers will require a minimum of 4 months from the publication of a final determination given that the Christmas/New Year period is approaching,” they added.
“In circumstances where aged care providers fully support the provisional views with respect to minimum rates and classification structure, it would be an entirely unfortunate circumstance if aged care providers were put at the risk of non-compliance with the Nurses Award due to an impractical commencement date.”