Nurses’ union warns on aged-care pay rise

The nursing union has launched a fresh attack on the aged care industry over concerns providers will not pass on the Fair Work Commission’s full 15 per cent pay rise to workers.

Australian Nursing and Midwifery Federation federal secretary Annie Butler says that a promise from the sector to pass on the wage rise was insufficient. Picture: Rob Leeson.

The nursing union has launched a fresh attack on the aged care industry over concerns providers will not pass on the Fair Work Commission’s full 15 per cent pay rise to workers, criticising a recent pledge from the sector as “nowhere near enough”.

Australian Nursing and Midwifery Federation federal secretary Annie Butler told The Australian that a promise from the sector to pass on the wage rise was insufficient, arguing it was non-binding and “signed by CEOs” – meaning it will not have an impact for workers on the ground.

The criticism comes after a raft of providers – including Aged and Community Care Providers Association, Baptist Care Australia, Anglicare Catholic Health Australia and Uniting Care – promised to pass on the money in response to initial concern from the unions that providers would not be legally required to pass on wage rises.

“We, as a responsible and supportive provider that values our aged-care workers, proudly pledge that every additional dollar the federal government gives us for this purpose will be used to pay for the increase to wages and associated on-costs,” the providers’ pledge read.

But Ms Butler said the union continued to hear evidence of employers who had planned to not pass on the wage increase to their employers, and ramped up calls to ensure it was legally enforceable for providers to pass on the wage rises to workers.

“No, it is not enough, it’s nowhere near enough,” Ms Butler said. “I know a couple of members and providers where the provider straight away emailed staff saying whatever funding we get will pass it on to their workers.

“They are trying to find ways to avoid passing on the funding to their workers. How is that a recruitment strategy?

The criticism came as Anthony Albanese defended Labor’s target for 24/7 nurses in residential aged care facilities despite warnings from providers and the nursing sector that new reforms would see facilities shut down amid a major shortfall of workers.

It comes after The Australian revealed concern from Australian College of Nursing chief executive Kylie Ward, who said it could take five to 10 years for the sector to ­recruit enough staff to meet ­the Prime Minister’s target, warning there is “absolutely no way” the industry would meet Labor’s July 1 deadline.

The sector is scrambling to ­implement reforms including mandated minutes of care per resident, quality and safety standards, and full-time nursing requirements as it adjusts to a new funding model bought in last October as recommended by the Aged Care Royal Commission.

Mr Albanese on Monday said he made no apologies for being “ambitious” and argued the “overwhelming majority” – close to 90 per cent – of residential facilities would meet Labor’s target.

He conceded the workforce shortages across the sector continued to be a “challenge”, which he said bolstered the need for Labor to fully fund a 15 per cent wage rise to make aged care a more attractive career.

ACCPA chief executive Tom Symondson said the peak body was confident the government would put in place “appropriate provisions” to ensure funding was passed on to workers. “Our members are committed to passing this funding on to their workforce, which is why many are signing the pledge,” he said.