BACKGROUND

Existing funding mechanisms for the ‘not for profit’ sector in Victoria

have resulted in a workforce crisis!

The community sector in Victoria is one of the only sectors left where the majority of employers continue to use the Award to determine workers wage rates and conditions.  Why?  Largely because the State government still uses the Award to calculate funding for wages and conditions in the community sector.

This contrasts with other state funded sectors - public, health and education – where government funding is based on negotiated Agreements that have wages and conditions that are far in excess of the relevant Award.

The result of this unfair treatment of the community sector is a significant and ever growing disparity in the wages and conditions of SACS workers versus comparable employees in the public sector – people doing the same or similar work in, for example, hospitals or for the Department of Human Services.

Based on ABS statistics, Community Sectors workers earn on average

$15,000 per annum less than the Australian average wage.

So how does the State government currently calculate community services funding?

Funding for most community sector organisations is calculated using a ‘base price’ for each program being funded and then sets service targets from this.  The sector and the State Government agreed on a process whereby this base price can be adjusted.  However, this Price Review Framework process does not factor in increases to labour costs outside of adjustments to Award rates, meaning that it cannot be used to argue for any significant increase to your wages or conditions.

Yearly indexation is provided to try and ensure that this base funding does not decrease in real terms.  85% of these yearly funding increases are provided on the assumption that organisations must be able to pass pay increases to their staff that are at least in line with the government public sector wages policy.  So the last sector funding indexation agreement provided organisations with funding that enabled them to pass on a 3% pay increase to their workers on 1 July 2006, 1 July 2007 and 1 July 2008.

However, most ‘not for profit’ community sector organisations continue to pay their workers the base Award rates.  Employers argue that this is because the ‘base price’ on which indexation is applied is not enough to cover the cost of providing the services making it hard for them to pass on the increases as they are needed to cover the funding shortfall.

If every employer was to pass on indexation increases, wages across the sector would improve but there would still be a huge and growing gap between what you currently earn in the community sector and what you could earn working in the public sector.  And for every minute this gap widens, the workforce crisis deepens.

All of this is happening at a time when the number of people in your community who need support continues to increase, their needs are becoming more complex and the government expects you to deliver more.

Poor funding practices have had profound and disturbing effect on the industry.

A survey by the ASU of workers in Victoria has confirmed the extent of the current crisis, finding that:-

·                     The annual staff turnover rate in community services is up to 6% higher than the Australian all industry average.

·                     48% of workers are not committed to staying in the industry beyond the next five years;

·                     The biggest single reason identified for workers who intended to leave the industry was ‘better pay elsewhere’;

·                     77% of managers surveyed nominated low wages as the main barrier to attracting and retaining staff;

·                     74% of managers said low wages was the main reason staff gave for leaving their service;

·                     The incidence of workplace injuries in community services/health industries is higher than the all industries average;

·                     Bullying, harassment and occupational violence comprises 72% of phone calls for support and information received by the ASU member contact office.

·                     Better wages, paid parental leave, portability of long service leave, a less stressful work environment and additional staff to cover workload would all contribute to retaining the SACS workforce.

ASU members are standing up and saying enough is enough!

The ASU is calling on the State Government to listen to the concerns of workers and to talk to their union to develop an appropriate wages policy for the sector.  We are working with members throughout the state to highlight to the crisis and ensure that their specific concerns are heard.  We believe that all sector stakeholders – peak organisations, employers, service users and the community at large – can and should support this campaign.

So what is happening in the campaign?

·                     Members all over Victoria are coming together and organising campaign events in their regions such as mass meetings, launches, get togethers and workplace BBQ’s to raise awareness of the issues;

·                     Employers in the community services sector – both large and small - are signing Employer Statements of Support for the campaign to show that they value their workers and the services they deliver;

·                     Union Delegates and members are talking about the campaign in their workplaces at team meetings, staff meetings and in the lunch room;

·                     Politicians and other stakeholders are being educated and lobbied about the issues;

·                     Signatures are being collected for petitions supporting the call to improve wages and conditions across the sector;

·                     Everyday community sector workers are joining the ASU and saying they want to be part of the solution and deliver decent wages and conditions to workers in the sector.

What can I do?

·                     Not a union member? Join today by calling 1300 855 570

·                     Join your local organising committee;

·                     Organise a meeting at your workplace to talk about the campaign

·                     Set up a union notice board in your workplace;

·                     Become  a workplace delegate;

·                     Participate in the campaign’s monthly and ongoing campaign activities;

·                     Write  to your local MP about the campaign (ASU has a pro forma you can use to assist)

·                     Don’t be a bystander in this vital community sector campaign

Want more information?

Background information paper 

Wage comparison table

Campaign fact sheet for members