ACSA Level One, 36 Albert Road, South Melbourne, Victoria 3205 Tel: (03) 9686 3460
Media Release
November 9, 2009
Pay equity test case threatens aged care jobs and services
A pay equity test case in the social and community services sector has the potential to cost jobs
and result in service cuts, according to Aged and Community Services Australia (ACSA).
ACSA CEO Greg Mundy said Deputy Prime Minister Julia Gillard’s heads of agreement with the
Australian Services Union (ASU) to test pay equity provisions under the Fair Work Act was
cause for alarm.
“This is the second time that Ms Gillard has reached an agreement with a union without also
consulting relevant employers,” Mr Mundy said.
“We are not opposed in principle to equal pay for equal work. But without a commitment from
the Minister for Ageing, Justine Elliot, to fully fund any increases, and a commitment from Ms
Gillard not to proceed without that undertaking, wage parity will mean redundancies and cuts to
services for older Australians.
“Aged care services are already struggling under the current funding mechanism and the
situation will deteriorate further unless appropriate measures are adopted to address the
funding crisis.
“A conservative estimate of a 20 per cent increase for aged care workers on a weekly base rate
of $750 comes in at $1.4 billion over a one year.
“If the Queensland decision, upon which the ASU application will be based, to award between
18 per cent and 37 per cent increases was to be adopted nationally, the costs would be
prohibitive.
“Aged care services are the 9th largest employer in Australia. With the percentage of
Australians over 65 set to comprise a quarter of the population in coming decades, the role of
these services will have to expand to keep pace with demand.
“In 2009, paying salaries, meeting the costs of maintaining and building new facilities and
providing elderly people with care and support in their homes, is already bordering on the
impossible. The situation can only worsen if the Government does not first address the basics
of aged care reform.
“In the interim, with the test case set to proceed to Fair Work Australia, Mrs Elliot must give an
undertaking that the Government will meet the full costs of any pay rises sanctioned for the
aged care sector.”
Media contact: Chris Hornsey 0419 513 432
NEWS 
