In a landmark decision, Australia's Fair Work Commission (FWC) has set the stage for better pay within the aged-care sector. The move, which is the culmination of years of advocacy and negotiation, gives an average pay rise of 23% across the sector.

The pay increase not only recognises the skill and dedication of aged-care workers but also addresses long-standing issues of equity and valuation in the sector.

The journey to this landmark ruling was spearheaded by unions, particularly the Health Services Union, under the leadership of Secretary Gerard Hayes.

Hayes hailed the decision as one of the most significant victories for the union and a pivotal moment for aged care workers across the country.

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New wage benchmark

The establishment of a new wage benchmark at $1,223.90 a week underscores a renewed understanding and appreciation of the complex, skilled, and compassionate care provided to the elderly in Australia.

This financial uplift is expected to usher in a new era of competitiveness for the aged-care sector, attracting talent and ensuring that aged care is no longer seen as a last resort for employment but as a rewarding and respected career choice.

The recognition of the "invisible" skills, such as empathy, patience, and the ability to provide comfort and assurance to the elderly, is a testament to the Commission's commitment to gender-neutral and fair wage assessment.

The decision is anticipated to trigger a ripple effect, promising billions in additional investments in aged care. This comes on top of an already substantial A$11.3bn allocation over four years announced in the 2023 budget, earmarked for a 15% interim pay increase. The outcome not only highlights the economic value of the aged-care sector but also its intrinsic value to the fabric of society.

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The gender-based undervaluation of workers

However, the FWC's findings also shed light on the broader issues of gender-based undervaluation in the workforce, particularly in care-oriented professions traditionally dominated by women. The adjustment of the wage rates, therefore, serves as a call to action for other industries, signalling the beginning of a broader movement towards equitable compensation.

The path to this decision was not without its challenges. The aged-care sector and its workers have long grappled with the dual burdens of underfunding and underappreciation.

The tireless campaign for a 25% pay rise, initiated in November 2020, laid bare the harsh realities faced by those at the frontline of elderly care. Their struggle highlighted not only the financial precarity but also the profound sense of responsibility and commitment to the well-being of the elderly.

The pledge to see a positive outcome

As the sector stands at the threshold of change, the government's role in facilitating this transition cannot be understated. The Albanese government's pledge to fund the outcome of the case exemplifies a partnership model between government and labour.

The FWC's decision is an appraisal of the societal value of care work. It recognises that dignity, respect, and fairness are not just the hallmarks of a compassionate society but also the foundation of a robust and equitable economy.