The Fair Work Commission FWC said the federal government would pick up the bill for any potential pay rise for aged care workers. The independent wages umpire is considering a 25 per cent pay increase for 200,000 residential and home care workers.
The Commonwealth argued that the existing award rates do not reflect the value and skills of the sector, despite the fact that it stopped short of nominating how much wages should rise.
Tony Burke, Minister for Employment and Workplace Relations, said the COVID epidemic had exacerbated pressures on the workforce and underlined the case for a pay increase.
Their work is undervalued right now, there is no doubt that their work is undervalued. He said that we need to change that.
Our government is prioritizing these workers as we try to get wages moving again. The Health Services Union welcomed the submission, arguing that the roles were more complex because of the ageing population and changing expectations.
National President Gerard Hayes said the submission of the government was a shot in the arm for the sector.
Older Australians won't get the care they deserve until we can attract and retain a workforce to look after them, he said.
The Government has taken action and understood this.
We are hopeful that the Fair Work Commission will make a decision that recognizes the work value of aged care.
The Royal Commission into Aged Care Quality and Safety's final report last year recommended lifting the pay of aged care workers.
Labor promised that if it won the election, it would submit a proposal to the FWC in support of a pay rise for the workforce.
The commitment was criticised by then-prime minister Scott Morrison, who questioned how Labor would fund any increase instead of giving aged care workers two standalone payments of $400.
The unions and industry groups argue that pay increases are needed to attract and retain skilled workers for the sector.
Aged Care Minister Anika Wells said a pay rise was the first step to address workforce shortages.
She said that there is a need for more staff in aged care and a pay rise is the start of ensuring workers are rewarded for the crucial roles they play.
Low pay and poor conditions in care sectors like aged care, where the majority of workers are women are some of the main causes of the gender pay gap.
The importance of increasing wages in aged care is to make sure that men and women are paid equally. If the unions case is successful, the FWC would change the aged care award, according to the document outlining minimum pay rates and conditions for the sector.
It is possible that the minimum wage for aged care workers will go up by $5 an hour.
The minimum wage would be bumped from $23.09 to $28.86 an hour, depending on the salary when the application was lodged.
A level 1 aged care worker could see their weekly pay go from $800 to more than $1,000.
The case has been before the FWC since 2020.
It is due to hear from the government and unions when it holds hearings this month.