Pay rises for aged care, disability workers despite employer protests

Overtime and weekend rates for casual aged care and disability services workers will rise from next July.

Overtime and weekend rates for casual aged-care and disability services workers will rise from next July after Fair Work agreed to defer increases by six months but rejected a push by employers for a longer phase-in period.

A commission full bench initially proposed to have increases take effect on December 1 and July 2020 but agreed to defer the first-stage increase and implement rises in one hit from the start of the next financial year.

Award-reliant casual employees in the aged-care and disability sectors will receive a casual loading when working overtime, weekends or public holidays in ­addition to any overtime and penalty rates that apply.

While deferring the first stage increase by six months, the commission rejected calls by a number of employers for the increases to be delayed until later dates.

The Australian Industry Group wanted the second increase delayed until December 2020, saying many employers providing services to National Disability Insurance Scheme participants were ‘‘struggling, or indeed failing to maintain profitable operations’’.

The Australian Federation of Employers and Industries wanted rises phased in over three years to 2022, claiming employers needed reasonable notice to accommodate the “unexpected and significant increase in labour costs”.

United Voice opposed the employer proposals, arguing that significant delays would mean casual employees would not be provided with a fair and relevant safety net for a longer period of time.

The commission accepted an increase in employment costs within a budget cycle — December this year — might place not-for-profit organisations under financial pressure, and a transition period would allow them to seek an increase in funding.

But it said a significant proportion of disability sector employees were low-paid and existing rates for casuals working overtime and doing work on Saturdays, Sundays and public holidays were not fair and proportionate to the “disability experienced by casual employees working at these times”

“In our view, an appropriate fair and just balance between these considerations is to provide that the increases in overtime, weekend and public holiday rates for casuals will commence operation, in full, from July 1, 2020,’’ the commission said.