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Many workers across the social and community sectors have felt undervalued and unrecognised for some time, so it was welcome news to have two significant announcements by the Fair Work Commission recently.
Our workforce supports people, often in their most difficult times, by helping to keep communities connected, safe and resilient. But for too long, the skills, responsibilities and expertise required to do this work have not been properly recognised or rewarded.
The FWC’s decisions represent a promising step towards addressing that imbalance, especially in recognising the value of a workforce which is overwhelmingly female while also acknowledging longstanding concerns about the historical undervaluation of the social service sector.
As workers face increasing cost of living and workload pressures, the FWC’s decision to increase wages by 4.75%, and the new SCHADS structure, aims to make a meaningful difference to the pay and conditions of the sector workforce.
But who pays for it?
This is the critical question that remains unanswered.
While the FWC can make determinations on minimum wages and employment conditions, it does not provide the funding needed to deliver them.
Our sector is already dealing with tightening margins, as well as uncertainty around government grants and funding. Without additional funding, organisations could find themselves facing higher employment costs without the resources needed to meet them. We are already hearing from organisations who are looking at making hard decisions about laying off workers in order to be able to afford these costs. No organisation should be forced to choose between paying workers fairly and continuing to deliver essential services to their communities.
That is why NCOSS’s focus now turns squarely to government
If governments support fair pay for community sector workers – and they should – then they must also fund the decisions that make it possible. Wage increases cannot simply be absorbed by organisations that are already experiencing acute financial strain due to rising costs, growing demand and ongoing workforce shortages.
These decisions create an opportunity to strengthen the sector, improve workforce retention and help attract the next generation of community service workers. But that opportunity will only be realised if governments provide the funding required to implement the changes properly.
Can you share with us what the decisions mean for your organisation by sending details to Advocacy@ncoss.org.au?
NCOSS will be working closely with the NSW Government and our partners across the sector to ensure that happens. We will continue making the case that fair wages and sustainable services go hand in hand.
The Fair Work Commission has recognised the value of our workforce. The next step is ensuring governments back that recognition with the funding needed to support both workers and the organisations that employ them.
Anything less risks leaving the sector worse off – and that would undermine the very purpose of these important reforms.