Responding to industrial reforms and policy changes Lisa Darmanin, Assistant Secretary, ASU Vic/Tas Branch

Two big changes in 2012 affecting pay (& conditions) in the sector: For most community & disability sector workers nationally,: 1.Transition to the Modern Award; 2. Transition to the Equal Pay Case rates of pay (Equal Remuneration Order) 2

What did the Equal Pay Case Achieve for the Sector? Acknowledgment that the work is under-valued, that this is related to gender and should be remedied. What are the ERO increases? 19-41% on top of Award (industry minimum) rates of pay + 4% loading + Annual Minimum Wage Review amounts 3

Scope of the Equal Remuneration Order (ERO) Scope: Reminder that the definition of Social and Community Services Sector means the provision of social and community services including social work, recreation work, welfare work, youth work or community development work, including organisations which primarily engage in policy, advocacy or representation on behalf of organisations carrying out such work and the provision of disability services including the provision of personal care and domestic and lifestyle support to a person with a disability in a community and/or residential setting including respite centre and day services. The equal remuneration case also applies to the crisis assistance and supported housing sector. 4

What Happens When? Key Dates: July – Modern Award Classification Structure is Active + Award Annual Min Wage Review Increase Annual Minimum Wage Review will continue to apply in July every year. December ERO decision phase-in begins These increases occur annually in nine instalments

Equal Pay increases: Level 2+ 23% Level 3+ 26% Level 4+ 32% Level 5+ 37% Level 6+ 40% Level 7+ 42% Level 8+ 45% Total increase to Modern Award Rates in 9 equal instalments over 8 years. Increases by level: 6

To calculate: 7 To calculate the increase: - subtract the current rate from the ‘final rate’ and then divided that 9. Where the current SACS rate is lower than the translated SCHCADS Award, the SCHADS Award rate applies. Where the current SACS “transitional” rate is higher, take the ‘final rate’, subtract the current SACS “transitional” rate and divide by 9. Current/ trans rate Modern Award rate Final rateFinal rate – current rate Divided by 9 1 Dec 2012 pay rate SW 2,1$955.60$ (5.1) $ $325.21$36.13$ SW 3,3$ $ $ (7.3) $ $466.37$51.82$

Classification Descriptors 8 Generic skills and responsibilities Evaluate core skill & responsibility requirements of the position (not the person), against the classification definitions Each position should be considered individually – a practical approach is to ensure the position description is accurate and use that as the starting point;

Classification Translation Wage rates are not the basis for translation; It is possible for two positions at the same current classification to translate to different levels, if they have different duties and different skill and responsibility requirements; and It is also possible for two positions currently at different levels to end up at the same level in the modern award. Experience and Qualifications considered 9

Classification Translation Ensure accurate PD Use Guides as a starting point to identify potential classification levels Review the PD against at least 2 potential classification levels Holistic approach, subject to some mandatory requirements (eg entry levels for certain qualifications) 10

Translation Guides Only a starting point –not a substitute for assessing skills and responsibilities using the classification definitions of the award Indicative roles based on –Evidence in equal pay cases –Skill levels Translation guides assume positions already correctly classified 11

FAQs: Can a rate of pay go down? No, employers cannot reduce wages as a result of translation. What happens if an employee is not translated/ doesn’t agree with translation post 1 July 2012? They can appeal – FWO +/or FWA What if an Enterprise Agreement applies? Reclassification may not immediately change an employee’s wage rate, and won’t displace the entitlements received an EA, but the Modern Award classification is a safety net & will determine minimum entitlements to Equal Pay increases. Once Equal Pay rates pass an EBA rate, the Equal Pay rates apply. A pay rate under an Enterprise Agreement cannot be less than the Award rate. 12

Funding Supplementation Federal Government committed to fully funding their share – both direct program funding and funding provided to states. To receive supplementation, organisations must: Certify they had eligible SACS workers on 1 Feb 2012 Agree they will use the adjustment to meet wage increases imposed under the order Accept the funding offer Extensive information is available at and-vulnerable-people/grants-funding/fair-pay-for-social- and-community-services-workers and-vulnerable-people/grants-funding/fair-pay-for-social- and-community-services-workers 13

Funding Supplementation 14 The Victorian Government has committed funds towards the ERO increases to the extent of their 12/13 budget commitment. coalition-committed-to-pay-increase-for-community-sector- workers.htmlb Consultation on implementation of the Commonwealth commitment is a separate process – still going

Recommendations: 1.Ensure accurate Position Descriptions 2.Complete process of classification translation 3.Calculate workforce entitlements to Equal Pay 15