The Government refuses to fund low paid workers

Today’s announcement by Fair Work Australia that low paid workers should receive a 4.78% wage increase effective 1 July 2010 follows closely on the announcement last week that the Government would increase funding for aged care providers by 1.7%.

ACAA CEO, Rod Young, calls on the Government to fund aged care providers at a sufficient level to meet the real cost of wages.

Seventy percent of the average cost of running an aged care service is staff wages.

Seventy percent of the total income that aged care providers receive comes from a Commonwealth Government subsidy.

ACAA calls on the Government to fund aged care providers for the 2010 and 2011 financial year at 3.4% not 1.7% which at least matches the Consumer Price Index and would allow providers to pay their staff at least at the rate of inflation.

If Government does not agree to this step, providers will have no choice but to look at cutting costs to match the inadequate funding index provided.