Hundreds of thousands of Australian workers are set to benefit from a historic report, evaluating the legacy of gendered pay in female-dominated industries.
Initiated in June 2024, the Fair Work Commission's (FWC) Gender-based undervaluation – priority awards review looked at the modern award classifications and minimum wage rates across aged care, social work, dental, pharmacy and childcare, to address the ongoing effects of gender-based undervaluation, and, ultimately, make steps to ensure equal remuneration for equal work.
The report, released on Wednesday afternoon, has recommended an increase to minimum award rates for health and childcare workers of up to 35 per cent.
Health Services Union (HSU) national secretary Lloyd Williams celebrated the report’s findings, calling it a historic day for gender equality.
“This is an historic and welcome decision from the Fair Work Commission. The health, care, and support sectors are critical, and most of the people performing the essential roles in these sectors are women,” Mr Williams said.
“Boosting the minimum award rates for these workers is well overdue and will make a huge difference for members in the current cost of living crisis. There’s still work to be done, but this is a major win for our members, and for women more broadly.”
As part of the review the FWC identified five awards which have been subject to “gender-based undervaluation” across aged care, social work, dental, pharmacy and childcare, including:
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
- Children’s Services Award 2010
- Health Professionals and Support Services Award 2020
- Pharmacy Industry Award 2020
- Social, Community, Home Care and Disability Services Industry Award 2010
Pay disparity still very much exists in female-dominated industries due to a long history of undervaluation, along with women being more likely to be in casual and part-time employment and the uneven burden of unpaid work.
Related: Despite some key milestones since 2000, Australia still has a long way to go on gender equality | Gender pay disparity still rife in nursing | Pay rises for aged care nurses funded with additional $2.6 billion
Australian Council of Trade Unions (ACTU) president Michele O’Neil said that “for too long, jobs where the majority of workers are women have been paid less.”
“Discounting women’s work has contributed to the gender pay gap and worsened cost-of-living pressures for households,” she said.
“Unions know there is still a lot more work to do to achieve gender equality. We will campaign to protect the laws that have paved the way for these life-changing pay rises.”
Minimum wage increases may strain employers
As many celebrate the FWC ruling as a crucial step in rectifying decades of discriminatory systems, concerns have been raised about the effect a minimum wage rise will have on already strained industries.
Chief executive of national employer association The Australian Industry Group Innes Willox predicts the FWC's decision will have a profound impact on employers, with many unable to meet increased awards.
“If the provisional views are maintained, there will be a dramatic increase in costs for affected employers, many of which are small not for profit organisations in mostly government funded sectors that lack any capacity to meet additional costs,” he said.
“Many employers risk being unfairly left between a rock and an impossibly hard place by the decision. It is crucial that they aren't left picking up the bill for the Government's legislation without appropriate support.
“What we sorely need is a plan for how the wage increases that have potentially been baked into the system by changes to IR laws will be funded, despite no clear pathway to improving productivity in what is an increasingly uncertain and fragile economic environment.”
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