Unions warn of urgent need to for childcare worker wage rise to save sector

Families face higher childcare costs – or a shortage of places for their kids – if Labor does not commit funds to cover a much-needed wage increase for early educators.

Families face higher childcare costs or a shortage of places for their kids if Labor does not commit funds to cover a much-needed wage increase for early educators.

Unions and employers currently at the negotiating table are still waiting on the federal government to indicate if, and how much, it is willing to contribute to a payrise needed to help the struggling sector retain and attract more staff.

The talks are the first major test of Labor’s controversial multi-employer bargaining reforms, which the government previously championed as the ideal mechanism for low-paid sectors like childcare.

Sources familiar with the negotiations say if Labor fails to step up, childcare providers will have to pass on costs to families, or if an agreement can’t be reached then the sector will be unlikely to attract the staff needed to meet demand for places.

In a December 18 letter sent to unions, child care associations and employers involved in the negotiations, lawyers for the government said the it would not be able to provide information about its position in February.

Demand for childcare places is soaring, but there are not enough staff. Picture: Getty Images

This leaves only weeks for an agreement to be reached in time for any additional government funding to be included in the May budget.

In the letter, seen by The Advertiser, the government said should it be “convinced” of the need for more supplementary funding, it may seek “co-contributions” from providers while also requiring no costs be passed on to families.

United Workers Union executive director of early education Helen Gibbons said a wage increase to help retain and attract extra staff was the “key” to unlocking more affordable childcare places for Australian families.

“I don’t think there’s anybody across the sector that doesn’t think that early educators should get a pay rise, the sticking point really is how is it funded,” she said.

Ms Gibbons said staff shortages had lead to centres “closing rooms and turning parents away” across the country just as Labor’s “cheaper childcare” policy came into effect last July.

United Workers Union’s Helen Gibbons says a wage rise is ‘key’ to delivering cheaper childcare. Picture: Supplied

“It is more affordable now, but families can’t get access,” she said.

“So there’s a real pressure on government to be able to deliver on what was a pretty key election promise.

“This wage increase is absolutely integral, it’s the missing piece, to the government’s cheaper childcare commitment.”

Ms Gibbons said concern about the limited amount of time left to reach an agreement in order for funding to be included in the upcoming May budget was shared by both unions and employers.

“All the parties are very focused on the urgency of fixing the workforce crisis in early education as quickly as possible,” she said.

“This is not a matter that can wait.

“We need to work through the issues and resolve the agreement as quickly as possible so that we can get money in educators pockets as soon as possible.”

Education Minister Jason Clare’s department has told unions and childcare providers they will have to wait until May to learn the government’s position on a wage wise. Picture: NCA Newswire /Gaye Gerard

Education Minister Jason Clare acknowledged more work was needed to retain childcare workers and keep the service available to families.

“We have cut the cost of child care and there are 14,000 more early childhood workers than there were 18 months ago, but there is still a lot more to do,” Mr Clare said.

“There aren’t many jobs more important than what our early childhood educators and teachers do … the work they do is critical to our children and our economy.”

Originally published as Unions warn of urgent need to for childcare worker wage rise to save sector