The ANMF’s landmark Aged Care Work Value Case before the Fair Work Commission (FWC) is nearing its conclusion.

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On 4 November 2022, the ANMF won an initial 15% increase to Nurses Award 2020 rates for registered nurses (RNs), enrolled nurses (ENs) and assistants in nursing (AINs) working in aged care, effective from 30 June 2023.

While final increases of between 17.9% and 23% (including the interim 15% rise) were already determined for AINs in March, the FWC has taken longer to decide final increases for RNs and ENs.

FWC “provisional view”

The FWC issued a “provisional view” on the ANMF’s application to further increase minimum award wage rates to appropriately reflect the value of nursing care and work.

The FWC proposed the following:

· Wage increases of between 11.8% and 17.6% for enrolled nurses (ENs). The weekly rate for an EN supervising PCWs would increase to $1,422.20

· Increases of between 4.2% and 25.5% for registered nurses (RNs) and Clinical Nurses (CNs). The weekly rate for an entry-level RN would increase to $1,449.60

· A new classification structure for RNs and ENs, including creating only one classification level for ENs in aged care

· Removing yearly increments for registered nurses (RNs)

The FWC also proposed that the increases be phased in over three tranches:

1. 1 January 2025

2. 1 October 2025

3. 1 August 2026

ANMF’S response to the FWC’s ‘provisional view’

In its submission to the FWC regarding its final decision, the ANMF highlighted four major areas of concern.

1. The ANMF strongly believes that current pay points for ENs should be retained without any reduction in number, arguing that the FWC’s ‘provisional view’ would provide no opportunity for ENs to advance within the sector. It also goes against recommendations made by the Royal Commission.

“The effect of that elimination is to eliminate career progression for ENs who do not choose to go and seek further degree qualifications,” the ANMF stated.

2. The reduction in pay points/grades is too drastic:

· Eight to three in RN Level 1

· Four to two in RN Level 2

· Four to one in RN Level 2

· Three to one in RN Level 4

· Six to one in RN Level 5

“A reduction in pay increments from 25 to eight (more than two-thirds is unsupported by evidence and is not necessary to achieve the modern awards objective.”

The ANMF believes that changing the existing structure is unnecessary. However, if it is pursued, it should be done in far less drastic a manner. This could include one or more additional pay points at Level 1, at least one additional pay point at Level 3, and retaining grades within Levels 4 and 5.

3. The ANMF also contends that nurse practitioners, who manage complex clinical needs for residents, should receive an increase under the changes.

4. Pay increases should be delivered in two, rather than three, tranches, on 1 January 2025 and 1 October 2025

Further, the ANMF said that if the Commission does enact its provisional view regarding eliminating pay points, it should consider awarding increases that are smaller to pay points set to collapse, to enable a more gradual elimination of pay progression differences.

Government seeks to delay pay rises

While the Albanese Government has committed to funding any further wage increases for aged care nurses, it continues to want to delay the operative date and phase-in pay rises.

The Commonwealth’s position proposes:

• for any wage increases of up to 3% – on July 1 2025
• for any wage increases of up to a further 3% (6% total) on 1 October 2025
• for any wage increases of a further 7% (13% total) on 1 October 2026
• for any wage increases up to a further 7% (20%) total on 1 October 2027
  
  

In its latest submission to the FWC’s ‘provisional decision’, the government noted logistical impediments to implementing funding for the wage increases for aged care nurses before 1 July 2025, including wage increases already underway for other aged care workers

“The Commonwealth is concerned that introducing further changes to wage rates may cause confusion within the sector, including employers, workers and care recipients,” the submission argued.

The FWC is expected to hand down its final decision in coming weeks.