Unions push for 9 per cent pay boost in sectors dominated by women

Early childhood educators, disability workers, and hairdressers are among workers the union movement says should get a 9 per cent pay rise in this year’s annual wage decision, in a fresh push for pay equity for people working industries dominated by women.

The Australian Council of Trade Unions is calling for the significant pay boost to be applied to awards in largely feminised occupations. It will be a down-payment on greater claims for equity, to be based on research by the industrial umpire into the disparity in gender pay.

Hairdressers are among those who should be given a 9 per cent pay boost, the ACTU says.Credit: Dominic Lorrimer

ACTU secretary Sally McManus said achieving equal pay for women required both system change and targeted pay rises in industries that were generally dominated by women and historically quite low-paid.

“A 9 per cent pay increase will not only support families with cost-of-living pressures, it will also be a vital first step to properly valuing the work of working women doing work critical to our community, such as educating the next generation and caring for our loved ones,” she said.

The ACTU will make its case for tailored wage boosts in a fresh submission to the Fair Work Commission’s annual wage review, having last month called for a 5 per cent increase in the minimum wage, currently $23.23 an hour.

An extra 4 per cent rise would apply across the board for people on certain awards in female-dominated industries. It would mean nearly $90 a week more for a childcare worker on level three of the children’s services award; someone involved in home disability care on the level three of the social, community, home care and disability services award; or a veterinary nurse, also on level three of the relevant award.

Annual inflation has continued to fall, dipping to 3.6 per cent in the year to March, down from 4.1 per cent in the 12 months to December. However, the most recent Australian Bureau of Statistics figures show a 1 per cent rise in the first quarter, attributed to rent, educational and medical cost increases.

Economists last week said the higher-than-expected consumer price index rise increased the likelihood of the Reserve Bank board considering another rate rise when it meets on May 6 and 7.

The increased pay bid will fuel the debate between employers and unions about the economic implications of substantial wage boosts, including on inflation and employment.

The Australian Chamber of Commerce and Industry called for a 2 per cent rise in its initial submission. The Australian Industry Group called for 2.8 per cent and, citing the union movement’s initial proposal, said: “Australia’s future employment, inflation and interest rate paths will be at risk under the reckless ACTU proposal for a 5 per cent increase.”

The Albanese government has repeated its call from previous submissions that the lowest-paid workers should have their pay increased in line with inflation, to ensure their real wages do not go backwards. Up to 2.9 million Australians have their pay set by the commission’s annual wage review.

The ACTU says the 9 per cent rise for certain workers is intended as an interim increase. There will be a more thorough look at pay disparity in specific industries such as retail, pharmacy, administrative services, cabin crew and legal services, as the Fair Work Commission is calling for responses to an April report on gender pay equity.

The ACTU figure also would be factored in for any pay rises for early educators and disability workers. The Fair Work Commission is hearing separate multi-employer bargaining actions launched by unions seeking substantial wage boosts for sectors.

However, it is not intended to cover workers in the embattled aged-care industry, who recently won pay rises of up to 28 per cent in the Fair Work Commission following a years-long campaign.

The government and unions touted that victory as recognising the value of care work. A broader view of industry awards will examine whether arrangements such as working from home can provide greater workforce participation for women and other caregivers.