❓ Question seeks to understand the financial impact of the Fair Work Commission's Equal Remuneration Order on organisations contracted with the Department of Health and Mental Health Commission. The Mental Health Commission acknowledges concerns and outlines government funding responses.
AnsweredQoN 5969Legislative Assembly
Asked
12 February 2020
Member
Portfolio
Deputy Premier; Minister for Health; Mental Health
QuestionView source ↗
(1) Have any organisations contacted the Department of Health and/or Mental Health Commission indicating they are under financial stress as a result of the Fair Work Commission's Equal Remuneration Order (ERO)? (2) If yes to (1), please provide details of: (a) the organisation; (b) the date on which the department was contacted; (c) whether the organisation has had its contract renegotiated as a result of the ERO; and (d) how much additional funding was provided to the organisation?
AnswerView source ↗
Answered
12 March 2020
Response time
7 days
Department of Health advises:
(1) No.
(2) (a)-(d) Not applicable.
Mental Health Commission advises:
(1) Yes.
(2)(a)-(d) A small number of organisations have contacted the Mental Health Commission through a number of avenues, including their contract managers, to raise issues in relation to sustainability and more specifically the Equal Remuneration Order (ERO). There is no formal register of this contact.
Since 2017, the Western Australian Council of Social Service, Community Employers WA and other key community services sector organisations have been raising concerns that ERO wage increases are having an impact on the ability of the sector to sustainably deliver services.
In response, the Government approved $1.9 million in supplementary funding for the 24 hours a day, 7 days a week (24/7) National Housing and Homelessness Agreement services for the 2019/20 financial year. The Government also reinstated the original Non-Government Human Services Sector indexation calculation which had been wound back by the former Government. This represents an increase of approximately $30.2 million in funding to the community services sector over the next four years.
On 5 December 2019, a global provision was announced of up to $15 million per annum from 2019/20 to 2022/23 for supplementary funding for community services organisations to meet the immediate cost impacts of the ERO.
(1) No.
(2) (a)-(d) Not applicable.
Mental Health Commission advises:
(1) Yes.
(2)(a)-(d) A small number of organisations have contacted the Mental Health Commission through a number of avenues, including their contract managers, to raise issues in relation to sustainability and more specifically the Equal Remuneration Order (ERO). There is no formal register of this contact.
Since 2017, the Western Australian Council of Social Service, Community Employers WA and other key community services sector organisations have been raising concerns that ERO wage increases are having an impact on the ability of the sector to sustainably deliver services.
In response, the Government approved $1.9 million in supplementary funding for the 24 hours a day, 7 days a week (24/7) National Housing and Homelessness Agreement services for the 2019/20 financial year. The Government also reinstated the original Non-Government Human Services Sector indexation calculation which had been wound back by the former Government. This represents an increase of approximately $30.2 million in funding to the community services sector over the next four years.
On 5 December 2019, a global provision was announced of up to $15 million per annum from 2019/20 to 2022/23 for supplementary funding for community services organisations to meet the immediate cost impacts of the ERO.
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