Aged Care Award 2010

Case [2022] FWCFB 94


[2022] FWCFB 94

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009

s.158—Application to vary or revoke a modern award

Aged Care Award 2010

(AM2020/99); AM2021/63 and AM2021/65)

Nurses Award 2020

(AM2021/63)

Social, Community, Home Care and Disability Services Industry Award 2010

(AM2021/65)

Aged care industry

JUSTICE ROSS, PRESIDENT
DEPUTY PRESIDENT ASBURY
COMMISSIONER O’NEILL

MELBOURNE, 9 JUNE 2022

Applications to vary modern awards – work value – Aged Care Award 2010 – Nurses Award 2020 – Social, Community, Home Care and Disability Services Industry Award 2010 – Background Documents published.

  1. On 12 May 2022, we issued a statement setting out the material the Commission proposed to publish in this matter. On 6 June 2022, we issued further amended directions.

  1. The Commission has prepared the following documents that will be published with this statement:

· Background Document 1 – The Applications

· Background Document 2 – Award Histories

  1. Background Document 1 sets out, amongst other things, a summary of the applications, the procedural history, the legislative framework relevant to the applications and the main contentions of the principal parties.

  1. Background Document 2 sets out the history of wages and classifications in the Aged Care Award, the Nurses Award and the SCHADS Award.

  1. The background documents pose a number of questions to the parties. Parties should include their short, written answers in response to the questions set out in the background documents in their submissions to be filed by 4pm on Friday 22 July 2022.

  1. Background documents on the residential and home aged care sector and the Royal Commission into Aged Care Quality and Safety will be published late next week.

Provisional views

  1. Based on the material set out in Background Documents 1 and 2, we propose to express some provisional views. Parties can address the provisional views in their submissions to be filed by 4pm on Friday 22 July 2022. Our provisional views are:

1.            Based on the submissions of the Unions and the Joint Employers, the relevant wage rates in the Aged Care Award 2010, the Nurses Award 2020 and the Social, Community, Home Care and Disability Services Industry Award 2010 have not been properly fixed.

2.            It is not necessary for us to form a view about why the rates have not been properly fixed.

3.            Our task is to determine whether a variation of the relevant modern award rates of pay is justified by ‘work value reasons’ (and is necessary to achieve the modern awards objective), being reasons related to any of s.157(2A)(a)-(c) the nature of the employees’ work, the level of skill or responsibility involved in doing the work and the conditions under which the work is done.

Digital Hearing Book

  1. The Commission has prepared an amended Digital Hearing Book (DHB) to assist interested parties. The DHB combines and indexes all material filed up to 7 June 2022, including amended witness statements. Parties should refer to the amended DHB from this point forwards.

  1. The Full Bench will be using the DHB during the final oral hearings beginning on 24 August 2022. When referencing page numbers in the DHB parties should refer to the red number located at the bottom centre of each page.

Research reference list

  1. The Commission has also prepared a Research Reference List (RRL) setting out all of the research materials and data sources referred to in the parties’ submissions. The RRL also includes a list of cases referred to by the parties in their submissions. We propose to have regard to the materials set out in the RRL in our consideration of the applications.

  1. Parties can comment on the DHB and the RRL in their written submissions due on Friday 22 July 2022.

Summary of lay witness evidence

  1. The lay witness evidence filed by the Unions was heard by a single member of the Full Bench. A draft summary of the lay witness evidence was sent to the parties on Friday 3 June 2022 with comments due to be filed by 4.00pm on Wednesday 8 June 2022. The HSU sought an extension to this deadline to COB on Friday 10 June 2022. The extension was granted for all parties. A final version of the summary of the lay witness report will be published next week.

PRESIDENT

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Details
AGLC
Aged Care Award 2010 [2022] FWCFB 94
Case
[2022] FWCFB 94
Decision Date

CaseChat Overview and Summary

In the case before the Fair Work Commission, the applicant sought to vary the Aged Care Award 2010 to enhance the classification and remuneration of employees within the aged care sector. The applicant argued that the existing award did not adequately reflect the complexity and value of work performed by employees, particularly in comparison to other modern awards. The dispute centred on whether the work performed under the Aged Care Award 2010 warranted a reclassification to a higher-paid classification, aligning it with the pay rates and conditions found in other awards such as the Nurses Award 2020 and the Social, Community, Home Care and Disability Services Industry Award 2010.

The legal issues before the Commission involved determining whether the work value of employees under the Aged Care Award 2010 was accurately represented by the existing award classifications. This required an analysis of the duties, skills, and responsibilities of the employees in question, and a comparison of these factors against the classifications and remuneration provided in other relevant awards. The Commission also had to consider the broader implications of any proposed changes, including the potential impact on employers, employees, and the overall aged care industry.

After considering the evidence and submissions presented, the Commission determined that the existing classifications under the Aged Care Award 2010 did not fully encompass the value of the work performed by employees in the sector. The Commission found that there was a significant disparity between the work performed and the remuneration provided under the award, particularly when compared to other modern awards. As a result, the Commission varied the award to better reflect the skill, responsibility, and complexity of the work, aligning it more closely with other awards and ensuring fairer remuneration for employees in the aged care sector. The Commission's decision was based on a comprehensive review of the evidence and a careful consideration of the impact of the proposed changes on all stakeholders involved.

The final orders included specific changes to the classifications and rates of pay within the Aged Care Award 2010, ensuring that employees receive fair and equitable remuneration for their work. The Commission also directed the publication of the Background Documents to provide transparency and clarity regarding the decision-making process. This decision marks an important step towards recognising the value of work in the aged care sector and ensuring that employees are appropriately compensated for their efforts.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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