NFP Funding For Fair Work Australia Wage Decision

Photo: qcoss.org.au

Government funded Not for Profits across Australia are about to receive Commonwealth funding offers to help pay for wage increases awarded in an historic decision by Fair Work Australia earlier this year.

The Minister for Community Services Julie Collins says organisations that receive Australian Government funding directly from the Commonwealth or through a Commonwealth-State agreement for one or more of the programs in scope will receive an offer from each of their funding agencies. As many as 48 Not for Profits are eligible for the funding.

“While the Australian Government begins the process of calculating supplementation funding at an organisational level it’s time for organisations to begin preparations in order to accept their conditional funding offers,” Collins said.

“They will have to certify that on 1 February 2012, they employed workers affected by the Fair Work Australia decision and provide assurance that the funding supplementation will be used to meet the cost of the decision.”

In Western Australian there is an extra step organisations will need to take.

“Organisations will need to confirm which workplace relations system they are under. Those who come under the national workplace relations system will be eligible to receive supplementation. As organisations under the Western Australian workplace relations system do not have an obligation to pay increased wages provided under the decision, they will not be eligible for supplementation.

“The Western Australian information on the website has been updated to provide some guidance for organisations. If you are still unsure of your eligibility please seek legal advice.

“In Queensland organisations will have to confirm if they are required to pay workers in accordance with the Queensland Industrial Relations Commission decision, or the Fair Work Australia decision.

“Organisations that have previously provided this information to their funding departments through the Queensland regulation process will not have to do anything more in this regard. More information for providers in Queensland.

“In order for the Australian Government to calculate supplementation, organisations that were not a part of the Queensland regulation process will receive a letter requesting they confirm which workplace relations decision impacts their organisation,” the Minister said.

On 1 February 2012, Fair Work Australia (FWA) made a historic decision to increase wages in the social and community services sector.

This decision affects workers who are employed under the Social, Community, Home Care and Disability Services Industry Award 2010 (SACS Modern Award). Specifically, the decision affects those workers classified under the following Schedules:

• Schedule B – Classification Definitions – Social and Community Services Employees 
• Schedule C – Classification Definitions – Crisis Accommodation Employees

To find out whether you or your staff are covered, you can view the Social, Community, Home Care and Disability Services Industry Award 2010  from Fair Work Australia.

The decision means that, starting on 1 December 2012, workers employed under the SACS Modern Award social and community services (SACS) and crisis assistance and supported housing classifications will receive annual increases to their minimum rates of pay until 1 December 2020.

The Equal Remuneration Order (ERO) handed down by FWA on 22 June 2012 determines how these pay increases will be introduced.

The Australian Government has committed around $3 billion to fund its share of the wage increases, awarded by FWA.

“This updates the previous commitment of $2.1 billion, as it includes the cost of the final ERO and the full phase in period to 30 June 2021. To meet its share of the costs of these wages, the Australian Government will provide supplementation to organisations delivering Commonwealth-funded programs that employ workers affected by FWA’s decision,” Minister Collins said.

“The Government will also pay its share of the cost of wage increases to programs funded through Commonwealth-State agreements.

“The Government has undertaken a rigorous process to calculate its share of the wage increase. The Government has tested these calculations through a number of different processes. One of the ways the Government tested this, was through examination of data generated through the Social Policy Research Centre (SPRC) Survey in 2011.

“The survey examined employment arrangements, including what coverage the SACS Modern Award would have across certain employers directly funded by the Commonwealth. This data helped confirm that the Commonwealth’s costing assumptions are robust.

The report is available at from the Social Policy Research Centre at the University of New South Wales.