❓ The WA government is working with community service providers to address the impacts of the 2012 equal remuneration order, providing additional funding and support to ensure compliance with wage increases while maintaining service delivery to vulnerable Western Australians.
AnsweredQoN 31Legislative Assembly
QuestionView source ↗
COMMUNITY SERVICES —
WAGES
31. Ms J.M. FREEMAN to the Minister for Community Services:
Before I ask my question, I also
recognise that today is the thirtieth anniversary of the appointment of the
first female Premier of Australia, Carmen Lawrence.
I refer to the McGowan Labor
government's ongoing support for WA's community service
organisations and their important work in helping vulnerable Western Australians.
Can the minister outline to the house how this government is working with
community service providers to address the impacts of the 2012 equal remuneration
order and ensure that they comply with the order to meet wage increases for
staff while delivering services to Western Australians in need?
WAGES
31. Ms J.M. FREEMAN to the Minister for Community Services:
Before I ask my question, I also
recognise that today is the thirtieth anniversary of the appointment of the
first female Premier of Australia, Carmen Lawrence.
I refer to the McGowan Labor
government's ongoing support for WA's community service
organisations and their important work in helping vulnerable Western Australians.
Can the minister outline to the house how this government is working with
community service providers to address the impacts of the 2012 equal remuneration
order and ensure that they comply with the order to meet wage increases for
staff while delivering services to Western Australians in need?
AnswerView source ↗
I thank the member for Mirrabooka
for her question and for her connection and partnership with the community
sector, particularly in her local electorate. She is very active in that
respect.
Members might be aware that Fair
Work Australia handed down the equal remuneration order in 2012, which was an
unusual and extraordinary series of pay increases to the community sector in
recognition of the fact that a large number of women work in this low-paid
sector. It was an attempt to increase wages through a staged approach. Some of
the increases over the period 2012 to 2020 were something like 25 per cent to
45 per cent, depending on the pay classification. Extra money has been
provided, at times, by the federal government; at other times, it has not
provided extra money for its contracts with the community sector. The state
government has also paid extra money to the sector, particularly in recognition
of contracts entered into before that order was handed down by Fair Work Australia. Also contracts were simply
rolled over after that order, so there was not the opportunity to put those pay increases into the contract pricing.
That has caused pressure now. The Western Australian Council of Social Service and Community Employers WA have advocated
for extra money from both the state and federal government in
recognition that there are still a few pay increases to go under that order. We
have been in negotiations with both those peak bodies to understand the extent
of the problem and to make sure that some extra money goes to the community
sector in recognition of those extra pressures.
Members
might be aware that in 2019–20, the government agreed to provide an
extra $1.9 million to 24/7 organisations to support their
around-the-clock wage costs, knowing that they are particularly vulnerable to
extra wage pressures because of the
labour-intensive nature of their work. We have also changed the indexation that
is paid to the non-government sector,
which is a way of supporting them. I remember being in Irina Cattalini's
office at WACOSS when she got the news that the previous Barnett–Harvey
government had unilaterally changed the indexation formula, which effectively
cut money from those organisations. She was furious. She thought that WACOSS
had a good relationship with the government at that time, but when the pressure
was on, that government acted unilaterally and cut money to the sector. We have
reinstated fairer indexation, which will deliver a $30 million boost to the
sector. Obviously, we have also quarantined the not-for-profit contracts from
all previous government savings measures. That applies to about 400
non-government organisations that provide about 1 500 contracts to the state
government.
Most significantly, at the end of
last year we announced a $60 million injection of funds targeted particularly
at the ERO payments. We are now in negotiations to get the first part of that
payment—$15 million this financial year—flowing to the sector
and to those organisations that are in need because of wage pressures. These
pressures across the sector are not easy, and we understand that. Of course, this
is on top of additional new money that we have put in—new money, not
just existing contracts. There is $72 million for our homelessness package;
over $50 million of new money to combat
family and domestic violence; $20 million for early intervention in vulnerable families for child protection work; and over $20 million into Target 120, the
youth justice strategy. New money was also put in as part of the
cost-and-demand model agreed in the child protection system. The extra money—$60
million—is not a small amount, with $15 million this financial year to
make sure that we meet the wage pressures of organisations funded under state
contracts. We continue the positive relationship with the community sector.
That was certainly evident at the breakfast the Premier and I attended at the
beginning of the year, along with a number of other members, particularly from
this side. The sector was particularly encouraging of the government's
work around homelessness and the more sophisticated approach to policy and service
delivery that this government is taking.
for her question and for her connection and partnership with the community
sector, particularly in her local electorate. She is very active in that
respect.
Members might be aware that Fair
Work Australia handed down the equal remuneration order in 2012, which was an
unusual and extraordinary series of pay increases to the community sector in
recognition of the fact that a large number of women work in this low-paid
sector. It was an attempt to increase wages through a staged approach. Some of
the increases over the period 2012 to 2020 were something like 25 per cent to
45 per cent, depending on the pay classification. Extra money has been
provided, at times, by the federal government; at other times, it has not
provided extra money for its contracts with the community sector. The state
government has also paid extra money to the sector, particularly in recognition
of contracts entered into before that order was handed down by Fair Work Australia. Also contracts were simply
rolled over after that order, so there was not the opportunity to put those pay increases into the contract pricing.
That has caused pressure now. The Western Australian Council of Social Service and Community Employers WA have advocated
for extra money from both the state and federal government in
recognition that there are still a few pay increases to go under that order. We
have been in negotiations with both those peak bodies to understand the extent
of the problem and to make sure that some extra money goes to the community
sector in recognition of those extra pressures.
Members
might be aware that in 2019–20, the government agreed to provide an
extra $1.9 million to 24/7 organisations to support their
around-the-clock wage costs, knowing that they are particularly vulnerable to
extra wage pressures because of the
labour-intensive nature of their work. We have also changed the indexation that
is paid to the non-government sector,
which is a way of supporting them. I remember being in Irina Cattalini's
office at WACOSS when she got the news that the previous Barnett–Harvey
government had unilaterally changed the indexation formula, which effectively
cut money from those organisations. She was furious. She thought that WACOSS
had a good relationship with the government at that time, but when the pressure
was on, that government acted unilaterally and cut money to the sector. We have
reinstated fairer indexation, which will deliver a $30 million boost to the
sector. Obviously, we have also quarantined the not-for-profit contracts from
all previous government savings measures. That applies to about 400
non-government organisations that provide about 1 500 contracts to the state
government.
Most significantly, at the end of
last year we announced a $60 million injection of funds targeted particularly
at the ERO payments. We are now in negotiations to get the first part of that
payment—$15 million this financial year—flowing to the sector
and to those organisations that are in need because of wage pressures. These
pressures across the sector are not easy, and we understand that. Of course, this
is on top of additional new money that we have put in—new money, not
just existing contracts. There is $72 million for our homelessness package;
over $50 million of new money to combat
family and domestic violence; $20 million for early intervention in vulnerable families for child protection work; and over $20 million into Target 120, the
youth justice strategy. New money was also put in as part of the
cost-and-demand model agreed in the child protection system. The extra money—$60
million—is not a small amount, with $15 million this financial year to
make sure that we meet the wage pressures of organisations funded under state
contracts. We continue the positive relationship with the community sector.
That was certainly evident at the breakfast the Premier and I attended at the
beginning of the year, along with a number of other members, particularly from
this side. The sector was particularly encouraging of the government's
work around homelessness and the more sophisticated approach to policy and service
delivery that this government is taking.
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