Fair Work orders pay rise for community sector

Updated

Sorry, this video has expired Video: Community sector workers secure pay rise (7pm TV News NSW)

Fair Work Australia has ordered the wages of a large number of community sector workers should increase by between 19 and 41 per cent.

Social workers, carers and child protection workers will be among the community sector employees who will eventually be paid the same as those in the public service.

Last year the workplace tribunal found that workers in the community and disability sectors were underpaid compared to public service workers doing similar jobs.

It found gender was one of the reasons for workers being undervalued.

In its ruling today, Fair Work said the highest paid employees would receive a 41 per cent, or $24,000, pay rise, bringing their annual salary to $83,000.

Workers on the lowest award rates will receive a rise of 19 per cent, an increase of around $6,000 a year.

The changes will affect about 150,000 workers across Australia.

The new rates will be phased-in in nine instalments over an eight-year period, rather than six years as was recommended in a joint submission, beginning on December 1.

Fair Work says the longer time frame recognises the effect the changes will have on state finances as employment and service provisions.

The Commonwealth was a party to the joint submission because it will affect many organisations it funds.

Australian Services Union NSW and ACT secretary Sally McManus says community sector workers will finally get recognition after years of appalling pay.

"For too long they've been underpaid. The decision today by Fair Work Australia is an absolutely fantastic one for us," she said.

"We got everything we asked for except they ordered a longer phase-in than what we asked for."

Recognition

Australian Council of Social Services (ACOSS) chief executive Dr Cassandra Goldie is disappointed with the implementation time frame, but says it is a decision about decent wages for an important workforce.

"For far too long the workers in the sector have led a life of work providing important vital services to the community and have themselves faced a life experiencing poverty," she said.

"The time has come to stop that. We are are delighted that Fair Work has finally made that recognition."

Prime Minister Julia Gillard welcomed the decision, saying the case could only be brought because the Government made changes to industrial relations laws.

She says the decision will make a real difference for community sector workers and it is essential that state governments commit to funding their share of the increase.

"It's a historic decision because it means more money in the pockets for workers who care for those who most need our help," she said.

"Many of them are women and many of them are low paid, working hard to make ends meet.

"This case, an equal pay case, finally gives them the recognition they deserve."

She also says the decision will "help make our economy more resilient".

"For the years that lie ahead... we will need to attract and retain more workers in the services sectors of the economy and especially in caring work, which has historically been dominated by women," she said.

"It's a good day for some workers who very much deserve proper recognition and they've got it today."

The Federal Opposition says the Government must make sure that the big pay rise awarded to community workers does not cost jobs in the sector.

It says equal pay is important, but it is also important to make sure the pay rise does not force the sector to slash jobs or services.

Topics: business-economics-and-finance, industry, community-and-society, australia

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