The Esperance Aged Care Facility, a non-profit organization located on Western Australia's south coast, is among the providers facing financial strain due to the recent Fair Work case that resulted in a substantial wage rise of up to 28.5% for aged care workers. This wage increase, which includes an interim 15% rise awarded two years ago, is being viewed as a historic win by the Health Services Union, recognizing the undervaluation of the work predominantly performed by women in the sector.
Tori Castledine, a board member at Esperance Aged Care Facility, expressed concerns about the financial impact of the pay rise on providers, stating that some facilities may struggle to absorb the costs without government assistance. The Aged and Community Care Providers Association emphasized the necessity for full government funding to cover the wage increase, highlighting the challenges faced by providers who are already operating under financial pressure.
Despite the Commonwealth's commitment to providing funding to support the increase, specific details on the extent of the financial assistance have not been disclosed yet. The aged care sector, which has been experiencing financial difficulties with a significant percentage of facilities operating at a loss, is eagerly awaiting government support to help navigate the financial implications of the wage rise. Louisa Johnstone Forster, the chief executive of elder rights organization Advocare, acknowledged the positive impact of the pay rise on elderly care and staff retention but emphasized the need for support for providers facing increased financial burdens.