The Prime Minister announced on 10 November 2011, that the Australian Government and the Australian Services Union (ASU) have reached an agreement in the Social and Community Sector (SACS) Workers Equal Remuneration Case currently before Fair Work Australia.
We have agreed to put a joint proposal to Fair Work Australia for an appropriate pay increase to help make gender equity a reality for SACS workers.
And the Australian Government will commit more than $2 billion over the next six years to fund our share of these increases.
This will allow community sector organisations delivering Commonwealth-funded programs to pay the new rates, without reducing services to the community. The Government will also increase funding under Commonwealth-State agreements that cover social and community sector employees.
The States and Territories should also do the right thing to support properly valued rates of pay, to pay their share of the cost.
The agreed joint submission asks FWA to make orders that:
- Support the ASU’s equal remuneration claim for new pay rates equivalent to those awarded in the 2009 Queensland equal remuneration case for SACS workers;
- Commence the phasing in of new rates of pay for employees covered by the award from 1 December 2012; and
- Phase-in new rates of pay over a six year period with the first instalment paid on 1 December 2012 and the final instalment implementing the full rates paid for all workers no later than 1 December 2018.
We are hopeful that service providers, such as your organisation, will join this submission.
The agreement still needs to be considered by Fair Work Australia, to determine whether to accept the terms of the agreement.
We will now work with the sector, and state and territory governments, to determine how funding arrangements will reflect the Government’s commitment to meeting our fair share of increased wages for community sector workers, when FWA makes its decision.
The Government will also work with the sector to identify opportunities for reform to strengthen and improve service delivery, and reduce red tape for the sector.
The Australian Government is committed to a strong and viable community sector, and we’re committed to gender equity. Yesterday’s announcement is a mark of the respect and regard in which this Government holds this sector, and its workforce.
View the Prime Ministers Media Release.