‘Devastating consequences’ if federal gov’t doesn’t fund after-school care staff pay rise

Parents could be forced to fork out hundreds of dollars extra in fees and centres could close, if outside school hours staff don’t win the pay rise they are demanding.

A wage war between after-school care workers and the federal government could cost parents hundreds of dollars and lead to centre closures if they fail to come to a deal.

The Outside School Hours Council of Australia (OSHCA) is calling on the Albanese government to fund a 25 per cent pay rise for outside school hour care (OSHC) workers through either a direct wage subsidy or hourly cap increase, following talks long daycare workers and other childcare staff could receive a similar increase.

It comes as the sector continues to suffer major workforce shortages following the pandemic, which is impacting the wellbeing of current staff, the quality of care they can provide and driving up demand in some suburbs.

Consequently, OSHCA says staff are leaving the industry due to low salaries, complex working conditions risking health and safety, and a lack of career progression opportunities.

OSHCA spokeswoman Melinda Crole said she feared centres across Victoria and other states could shut their doors if the federal government did not support a wage increase.

“The extreme situation would be to either pass on the full costs to families or to close unviable services in the event of an unfunded wage increase of 25 per cent,” she said.

Families might have to fork out extra in after school care fees if the government doesn’t agree to fund a wage increase for outside school hour care staff.

Ms Crole said if the wage increase isn’t funded by the government, costs could be passed onto parents who could be expected to pay up to $500 extra per child annually in some cases – impacting more than 350 thousand Australian families.

“The (workers) are absolutely highly educated to deliver what they do and they deserve a pay increase,” she added.

Southbank mum Tameeka Castelino sends her sons, aged nine and seven, to outside school hour (OSH) club in South Melbourne, where she’ll also enrol her four-year-old son once he starts school.

The paralegal said the service enables her to work full-time, as she has no family in Victoria to look after her children while she’s at work.

Ms Castelino pays a total of $53 a day per child – before subsidies are applied – to send her sons to OSH club.

She said if fees were to skyrocket to cover the costs of a non-government funded pay rise, parents would be forced to cut extra-curricular activities and other necessities from their budget.

“Parents would have to reduce their work hours (to look after their child), cut back on areas like swimming lessons or skip meals if prices went up – it would have a devastating impact,” she said.

Tameeka Castelino's sons Mason, Harrison and Flynn.

The OSHCA has proposed two options on how the government could support a funded wage increase, including a direct wage subsidy which could assist in the retention of staff and attract more people to the workforce.

The second option is to increase the hourly rate cap by an agreed percentage, which would flow through to services as an increase in revenue – however Ms Crole said this could have a negative impact on families as there would still be extra out-of-pocket costs.

Ms Crole added: “Ultimately, if the government doesn’t fund a wage increase, OSCHA workers may move to different sectors or industries, which would reduce the accessibility, availability and affordability of outside school hour care.”

Opposition spokesperson for education Jess Wilson said the Labor government must address these concerns to ensure “a career in early childhood education is an attractive choice so that families can access the local and affordable childcare they deserve”.

A Department of Education spokesperson said it would continue to advocate for Victorian families and was “looking forward to the Productivity Commission’s review of the early childhood education and care sector”.