Fair Work Australia has ruled in favour of a large number of community sector workers, ordering a pay rise of between 19 and 41 per cent.

 

The pay rises are for employees in the Social and Community Services classifications and the Crisis Accommodation classifications of the Social, Community, Home Care and Disability Services Industry Award 2010 (the SACS modern award).

 

The ruling ends a two-year pay dispute first lodged by the Australian Services Union (ASU) in March, 2010. The dispute was first lodged as an appeal against gender-based pay inequalities.

 

The ruling will see the sector’s highest paid employees receive a 41 per cent, or an average of $24,000, pay rise, while workers on the lowest income will receive a 19 per cent, or around $6,000, rise.

 

In its ruling, Fair Work Australia found that gender was one of many reasons that workers in the sector were being underpaid.

 

A majority of the Full Bench (Justice Guidice, SDP Acton and Commissioners Harrison and Cargill) endorsed the joint submission made by the ASU and the Australian government. The joint submission argued that the minimum pay rates in the Social, Community, Home Care and Disability Services Industry Award 2010 should be increased between approximately 19 – 41 per cent depending on the classification level.

 

The Full Bench also ordered a loading of 1 per cent per annum in December of each of the years 2012, 2013, 2014 and 2015 to compensate for impediments to bargaining in the industry. These new amended award rates will also be subject to annual wage reviews.

 

However, the loadings will be introduced over 8 years, in nine instalments commencing on 1 December 2012 and ending on 1 December 2020. The Full Bench made this particular order to minimise any detrimental impact the pay increase could have on employment, the provision of services and state finances.

 

In dissent, VP Watson found that the public sector was not an appropriate equal remuneration comparator or that the wage gap between the SACS industry and the public sector was not attributable to gender. According to VP Watson’s decision, any wage increase should occur through the enterprise bargaining framework.


ASU Assistant Secretary Linda White welcomed the decision, describing it as a moment that workers around the country will never forget.

 

"After many years of appalling pay this decision finally gives them the recognition they deserve. These workers do crucial work in our communities and yet up until now they have been paid more than 30 percent less than those performing comparable work in other sector,” Ms White said.

 

Ms White said the decision recommended pay rises be phased in over a period of 8 years, two years longer than the joint submission put to Fair Work Australia by the ASU and the Federal Government.

 

"The recommended phase in time for the increases has been extended from 6 years to 8 years. This is disappointing for workers but we should not lose sight of the fact that this is the first decision that backs equal pay in a generation."

 

A full copy of Fair Work Australia's decision can be found here