Industrial News: May 2010

Aged care employers warned not to reduce nurses’ wages

The Australian Nursing Federation, in collaboration with the New South Wales Nurses’ Association and the Queensland Nurses’ Union, are lobbying the federal government to do more to protect nurses’ wages and working conditions that may be under threat from the recent award modernisation exercise.

In response to our concerns about the potential impact of moving to the new award the federal government has written to aged care organisations reminding them of their legal obligations. Below is an abridged version of the letter to employers:

The Australian Government is concerned that recent public statements concerning the aged care sector may have given rise to a perception that it is permissible for employers to reduce the wages and allowances of aged care nurses in New South Wales and Queensland as a consequence of the changes to the award standards.

I [Federal industrial relations Minister, Julia Gillard] am writing to clarify the operation of the Fair Work legislation and to seek your assistance in ensuring that aged care operators are aware of their obligations.

It is not permitted to reduce the take-home pay of any employee simply because the underlying minimum conditions of the award have changed. Firstly, this may be in breach of common law contractual obligations. Secondly, a statutory remedy is provided in the legislation if this was to occur. Take-home pay orders are provided in the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Schedule 5, Part 3) to protect employees from any reduction in take-home pay related to changes in the award standards.

The Government will carefully monitor the operation of the take-home pay provisions and will intervene as required to make sure they operate as intended.

The situation of the aged care nurses’ award as it applies in New South Wales and Queensland is unusual and is of concern to the Government. The pre-existing state Queensland and New South Wales awards were ‘paid rates’ instruments and in large part reflect pay and conditions outcomes negotiated at an industry level, including rates of pay in some classifications significantly higher than what applied in other states.

The Government clearly has a special interest in ensuring fair and equitable workplace relations in the aged care sector given its status as principal funder. I encourage your members to continue to observe current award standards for both current employees and new employees as a matter of fairness, equity and good workplace practice.

In addition to seeking the practical support of government to protect and improve aged care wages the ANF is pursuing an application with Fair Work Australia which, if successful, will prevent employers reducing nursing wages. Visit the website for more information on this campaign.

Nick Blake
ANF Senior Federal Industrial Officer