Provider denies union claims it has failed to pass pay rise onto workers

The nurses union has accused a NSW aged care provider of failing to abide by Fair Work Commision (FWC) decisions that would mean more money for its workers.

NSW Nurses and Midwives’ Association (NSWNMA) general secretary Shaye Candish said the Illawarra Retirement Trust (IRT) has refused to “pass on pay increases to their incredibly hard-working nurses and carers,” labelling the not-for-profit’s actions as “deeply disappointing.”

The NSWNMA alleges that the Illawarra-based provider has not given its employees the March work value increase that other registered and enrolled nurses working in aged care have received.

“It is our expectation that the federal government’s funding will be passed on in full to workers following the Fair Work Commission’s ruling which highlighted the historic undervaluing of the female-dominated care industry,” Ms Candish said

“The NSWNMA is not aware of any other providers refusing in this manner. In tough economic times, our members desperately need this income boost. Anything less than passing this funding on in full is pocketing money, which should be going to nurses and carers.”

RNs and ENs working in aged care across Australia received a pay bump on March 1 as determined by the Fair Work Commission’s (FWC) changes to the Nurses Award 2020.

The pay increases, outlined in the December’s final determination, vary across classifications, building upon the 15 per cent award wage increase introduced from 30 June 2023.

The government also announced in the federal budget in March that it would inject $2.6 billion into the wages of over 60,000 aged care

“As part of the March tranche of funding, RNs and ENs across the country are receiving up to $6 extra an hour, but IRT employees are missing out. The October increase is also at risk of not being delivered to our members, with IRT refusing to commit to it.

“We call on IRT to do the right thing and show they value their workforce by ensuring nurses and carers receive the pay they deserve.”

IRT has denied the allegations, assuring Aged Care Insite that the company “values all roles and the people that perform the associated duties to provide care to our residents and customers.”

“IRT has delivered all Work Value and Wage Case decision increases using all government funding and adding its own to all staff since July 2023. This includes an increase in January ranging from two to 11.5 per cent across all roles within our Enterprise Agreement,” an IRT spokesperson said.

“The January increases took into account adjustments according to changes in role classifications and funding from the government in relation to the Work Value and Wage case decisions and satisfied the requirements of the Department of Health and Aged Care’s Guidance regarding funding delivery.”

The provider reports that the company contributed approximately $3.8 million of its own funds to delivering the January pay increase, as government funding does not account for the added cost of other staff entitlements such as annual leave payments, shift allowances and overtime

Government funds are allocated based on the calculation of $8.73 per resident per occupancy hours per day. At the time of calculation, IRT had 1662 residents under its care, resulting in funding just under $5 million.

Related: Aged care nurses set to earn more from March 1 | Pay rises for aged care nurses funded with additional $2.6 billion | Federal Budget: $2.6bn for wages and $291.6m for aged care | Dates for care workers’ pay rises set by Fair Work Commission – nurses still waiting

“IRT pays all its staff, including nurses, at above-award rates and is committed to maintaining its position in the top 10 aged care providers when it comes to pay,” the spokesperson said.

“For example, IRT’s pay rates for our registered nurses range from $42.68 to $54.51. The modern award rates, for the same registered nurses, range from $35.41 to $40.91.”

Regarding nurses specifically, IRT has said that in the 18 months since July 2023, nurses employed by the company in various roles have received a total pay increase of between 18 and 27 per cent.

“IRT has addressed the requirements and intent of the Work Value and Wage Case decisions, which has been to ensure that people in defined aged care roles, according to the relevant Awards, are paid at the correct rates and in recognition of their value,” the spokesperson said.

“For this reason IRT also delivered additional increases to some roles that were not recognised by the Work Value decision in the same way as others.”

IRT’s enterprise agreement, which includes a proposed offer of 7.5 per cent over three years, will be put to members to vote on next week. If staff vote in agreement, IRT has confirmed all workers will receive a 2.5 per cent increase from July this year.