ASU & Federal Government agree on pay equity rates & funding
The Federal Government and the Australian Services Union have agreed on rates and funding as they head into the final hearings of the federal equal remuneration case.
Last week QCOSS welcomed the announcement by the Federal Government and the Australian Services Union that they had arrived at a joint position prior to the final hearings of the Fair Work Australia equal remuneration case and will make a joint submission to Fair Work Australia. Today that submission was made public and is available here.
Their agreed position is that:
- The rates should equal the Qld pay equity rates
- The payment of rates should begin on 1 December 2012
- The rates should be phased in over six years; and
- That the Federal Government will provide over $2 billion to fund its share of pay rises.
This is a great outcome for achieving fair wages across the sector and across Australia and it was very gratifying to hear the Prime Minister of Australia speak of the value of the community sector and its workers (read the PM’s speech here).
Some questions still remain. Firstly, there is potential for this joint position to be challenged at the final hearings of the case and the final decision of Fair Work Australia may not necessarily align with this position. The final hearings are scheduled for November 28, December 7 and December 8.
It also remains to be seen whether $2 billion dollars will be sufficient over the six years and how the funding and new pay rates will be implemented. Moreover, what does this commitment mean for Queensland organisations that are already paying the Queensland pay equity rates or will be required to in the meantime? At this stage this commitment of funding seems to only relate to the outcome of the federal equal remuneration case. Given that many Queensland organisations are bound by the Queensland pay equity order until such time as the federal rates catch up, this could leave Queensland organisations short-changed in the meantime.
QCOSS has and will continue to talk with the state and federal governments, unions and other key stakeholders to ensure there is awareness of the challenges many organisations face. In Queensland there are organisations in a variety of situations: some have been bound by the Queensland rates all along, some will be bound when the Fair Work Regulations is re-drafted and some will be covered by the outcome of the federal equal remuneration. In addition to this organisations operate with a variety of funding arrangements: state funded, federally funded, self funded and everything in between.
QCOSS continues to advocate that both the Commonwealth and State governments should fund the full, fair government-contracted cost of service delivery regardless of when or how organisations are bound by higher rates. Both levels of government should establish an ‘Industry Support Package’ to address (in a transitional way) any impact of rising wage costs on organisations providing services (funded and unfunded) to vulnerable Queenslanders whose service viability is at risk. We have also recommended to the State government that a ‘Sector Funding Taskforce’ be established which can assist with any transition.
QCOSS presented this view in our initial meeting with Mr Arch Bevis who has been appointed by Senator Chris Evans to consult around the re-drafting of the Fair Work Regulations, which will bind further Queensland organisations to the Queensland pay equity rates. QCOSS will be making a written submission to Mr Bevis which will reinforce this view and outline our position on what the re-drafted Regulations should look like.
QCOSS believes that government needs to clearly define their role and what they are prepared to fund. The sooner government does this, the sooner sector organisations will be able to plan for the future.
There are more issues that require clarification and QCOSS will continue to communicate what we know (or don’t know!) as it comes to hand. In an attempt to make the current picture a bit clearer we have developed a snap-shot of the current state of play.
Equally, it is important that our members tell us their views, suggestions and concerns so that we can provide clear messages to government around the issues organisations face. I urge you to do this in any way that works: phone Jane Balcaceres on 07 3004 6934; email janeb@qcoss.org.au; or speak with any QCOSS staffer.
Mark Henley
Director, QCOSS.
