In a recent decision, a Full Bench of the Fair Work Commission decided to increase minimum wage rates up to 28.5% for a range of caring occupations in the Aged Care industry (the “Aged Care Decision”). The increases in wages occurred across various occupations in two awards (the Social, Community, Home Care and Disability Services Industry Award 2010 and the Aged Care Award 2010).

Increases in other industries and occupations are very likely to occur on the same basis as the Aged Care Decision.

The reasons set out in the 102 page decision detail a framework that could be adapted by potential applicants to argue for further increases. Of course, it will depend on the capacity of applicants or potentially the Commission (where it is acting on its own initiative), to gather evidence about the skills and capabilities required of the occupation which have been historically undervalued.

The decision will likely be the basis for future decisions which increase minimum wages for other employees working in feminised industries and occupations involving “caring work.”

The Aged Care Decision in determining how much the increase should be, decided to align the standard rate (Trade Rate or Certificate III rate) to the standard rate in the Equal Remuneration Order (“ERO”) for the Social, Community, Home Care and Disability Services Industry Award 2010 (the “SCHCADS Award”) which was determined in 2011. This resulted in employees who were employed in roles at a Certificate III level in the Personal Care Worker, Assistant in Nursing and Home Care Worker occupations having their rates of pay aligned to the Level 2 rate in the SCHCADS Award ERO of $1223.90 per week.

What this potentially means is that for other industries where the standard rate in the Award is aligned with the C10 rate in Manufacturing and Associated Industries and Occupations Award 2020 of $995.00 per week and if similar findings are made in relation to the historical undervaluation of work based on gender in a caring industry, those rates are likely to be aligned to SCHCADS Award ERO rate of $1223.90 per week.

The Commission is addressing on its own initiative, through the Annual Wage Review process, the gender pay gap in awards. In that process the Commission has identified 13 Awards which are used to set the pay in 29 large, highly feminised occupations within feminised industries. Excluding the Aged Care and SCHCADS Award, the remaining 11 are:

• Nurses Award 2020 (Midwives, Registered Nurses, Enrolled and Mothercraft Nurses, Nurse Managers);
• Educational Services (Teachers) Award 2020 (Early Childhood (Pre-Primary School) Teachers; Primary School Teachers);
• Children’s Services Award 2010 (Child Carers);
• Health Professionals and Support Services Award 2020 (Dental Assistants, Receptionists in Hospitals and General Practice, Medical Technicians, Psychologists);
• Educational Services (Schools) General Staff Award 2020 (Education Aides);
• Hair and Beauty Industry Award 2020 (Hairdressers and Beauty Therapists);
• General Retail Industry Award 2020 (Clothing Retail Sales Assistants and Retail Managers);
• Pharmacy Industry Award 2020 (Pharmacy Sales Assistants);
• Legal Services Award 2020 (Conveyancers and Legal Executives);
• Animal Care and Veterinary Services Award 2020 (Veterinary Nurses); and
• Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Award 2020 (Dental Assistants).

It is likely that these occupations will experience pay rises if they are found to have been historically undervalued on the basis of gender and have skills that have not be valued or been “invisible” to the industrial relations system.

A close eye will be kept on the Annual Wage Review process being conducted by the Fair Work Commission and applications which are likely to now be made based on the Aged Care Decision.

Michael Nguyen, Senior Associate