Two big steps forward for aged care

The aged care sector has taken two historic steps towards better staffing and decent wages for nurses and other employees.

Federal legislation to make residential aged care facilities roster registered nurses on duty 24/7 came into effect on 1 July.

Some facilities had been operating without a single RN on site, despite a general rise in the clinical needs of residents.

Also on or after 30 June, a 15 per cent increase in award wages started to flow through to nurses and carers in the residential and home care sectors.

Approved by the Fair Work Commission and funded by the federal Labor government, it is the biggest wage increase ever achieved in aged care.

And there are more improvements to come, including mandatory minimum care minutes starting in October this year.

These significant reforms are the fruit of years of hard campaigning by members of the NSWNMA and other aged care unions.

“Tirelessly, our members collected signatures on petitions, held street stalls and public forums, contributed to state parliamentary inquiries, met with politicians and stakeholders, and gave evidence at the historic aged care royal commission,” NSWNMA General Secretary, Shaye Candish, said.

“The 15 per cent award increase goes a long way towards recognising the value of a historically underpaid workforce and will help the industry to attract and keep staff – thereby delivering much-improved care for elderly residents.

“In addition, some assistants in nursing will also be entitled to a 5.75 per cent increase to minimum award rates. This will be a significant boost for some of our lowest-paid workers in the aged care sector.

“It is great to finally see a federal government brave enough to promise reform of the aged care sector and subsequently deliver it.”

Shaye said nursing unions are working with the government to make sure employers are accountable for implementing the 15 per cent award wage increase in full, as the government intends.

The government is giving $11.3 billion to providers to cover the 15 per cent increase for RNs, ENs, AiNs, personal care workers and lifestyle workers.

Employers Must Pass On All Additional Funding

Guidelines published by the Federal Department of Health and Aged Care show what the 15 per cent increase is worth in dollar terms for all classifications (see tables at www.health.gov.au/sites/default/ files/2023-06/aged-care-workerwages-guidance-document.pdf ).

“It is vitally important that [aged care workers] receive the full benefit of this funding so the aged care sector can attract and retain a skilled workforce,” says the department’s guidance document.

By law, members who are paid award rates should have received the new higher award rates from the first full pay period on or after 30 June.

The government also expects providers to pass the increase on to workers who are paid aboveminimum award rates, in line with the published tables.

The tables show that if you earn above-award wages (usually via an enterprise agreement) you should get the same increase in dollar terms as workers on the award.

Workers should not expect to receive a full 15 per cent on top of enterprise agreement rates, the guidance document warns.

It also says, “Providers must pass on all additional funding allocated to wage increases to their workers in the form of an increase in wages.”

“Funding should not be used for short-term localised incentives, which apply to only some staff in a

Rate difference

particular area/s of labour shortage. “Any short-term incentives should be funded from the provider’s own resources.”

The 15 per cent increase is fully funded with taxpayer dollars and the department’s guidelines make it clear this increase should not be used as an excuse to restrict enterprise bargaining.

The guidance document says, “Providers can pay over and above the amounts set out in this guidance and the government expects the usual enterprise bargaining to occur, with periodic wage increases drawn from the provider’s funding as in past years.”

Employers Must Be Accountable

The document states providers will need to tell individual workers their old and new wage rates via letter or email.

“The government also urges providers, as far as possible, to undertake workforce communications in consultation with unions and other employee representatives,” it says.

“Where appropriate this should involve joint communications, including paid workplace meetings.”

For-profit and not-for-profit providers of residential care and home care packages will need to state in their quarterly financial report that all funding provided to implement the 15 per cent wage increase is passed on to workers.

“Providers are required by law to provide accurate information to the government,” the guidance document warns.

“The department will work with the employer peaks and unions to follow up worker complaints.”

From the fourth quarter of the current financial year (April to June 2024), the quarterly financial report will also collect additional information about wages, including the minimum and maximum wage rates for direct care workers, as well as information on the primary way workers are being paid (i.e., award, enterprise agreement, individual agreement).

“The department will closely monitor providers’ expenditure on labour costs and identify trends in this spending over time,” the document says. n

The difference in dollar terms between the old Nurses Award rate and the new award rate: