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 Pay-rise decision may open the doors for union claims 

Pay-rise decision may open the doors for union claims

01 Feb, 2012 07:33 PM
THE decision of Fair Work Australia to give a large pay rise to up to 150,000 community and social workers is a massive boost to those workers and might have implications for thousands more in other fields.

Most community workers will enjoy a wage jump of about $15,000 to be phased in over eight years from December 1, 2012.

With pay rises ranging from 19 to 41 per cent depending on level and state, plus 4 per cent to compensate for a lack of enterprise bargaining in the sector, Australian Services Union workers were rejoicing yesterday.

According to the ASU, the decision will change the lives of many low-paid employees.

But others remain cautious about the implications of such a significant decision.

Australian Industry Group chief executive Heather Ridout said the ruling created huge risks for the workplace relations system.

“The danger is that the decision will lead to a raft of union claims in other industries.”

And it’s not only business advocates which will be looking at the decision closely.

The implications for the Victorian government are significant.

Victoria has budgeted $200 million over four years, which is well short of the estimated cost to the state of $1.1 billion over six years contained in its own submission to Fair Work Australia.

Before the 2010 election, Community Services Minister Mary Wooldridge promised to fund the outcome of the case, even if it cost more than initially budgeted.

Judging by its response yesterday, it will be applying pressure to the federal government – which itself has committed at least $2 billion over six years to fund the increase – to ensure the state budget bottom line is not adversely impacted.

Of course, the inter-governmental bickering, which the public has come to know and despise, is merely a side issue in the debate and one which will be solved.

What is more important is the precedent the Fair Work Australia decision sets in terms of wage equality for those who work in fields to support the nation’s most vulnerable.

The work is often difficult and thankless.

Whether it also opens the doors for other major unions to stake claims for similar increases is possible.

It’s doubtful that the case would be as strong as the one put forward in this example.

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