As described in a companion piece on what the revocation of the Equal Remuneration Order may mean for Australia’s female-dominated community services sector, ongoing government funding is critical to maintain quality services. In today’s companion piece, Kathy McDermott of the National Foundation for Australian Women (@NFAW) describes the advocacy efforts of the sector and peak bodies with the Morrison Government on this issue, and calls for meaningful engagement.

Alliances representing 160 women’s organisations have called on the Morrison Government to protect equal pay and community service jobs at risk in this year’s May budget.

In a broadly endorsed letter, the National Foundation for Australian Women and the Women’s Electoral Lobby have jointly written to Josh Frydenberg and to the Minister for Women, Marise Payne, raising the $554m budget issue for women and for the community sector generally that was first identified in ACOSS’s 2020 pre-budget submission. This issue is the ongoing status of equal pay supplementation for community sector workers.

This is an old matter that should have been settled by now.

An underfunded, over-strained community services sector will lead to dangerous gaps in service provision. Image by jjpn from Pixabay

In 2012 the Fair Work Commission made a landmark decision that addressed the gendered undervaluation of work performed in much of the community services sector - the Equal Remuneration Order or ERO. As a result, wages increased by up to 45% over 8 years, and most governments across Australia, including the federal Government, provided additional funding to ensure that community sector organisations could pay equitable wages while also maintaining essential services to the community.

The supplementation that was provided in federal government grants and service agreements simply maintained the level of services to communities and ensured community organisations adhered to their industrial obligations under the ERO ruling.

This supplementation was made secure until June 2021 by Gillard government legislation back in 2012 -- the Social and Community Services Pay Equity Special Account Act. Under this Act, the last payment to the special account occurs on 1 July 2020, leaving ERO payments to cease in July 2021 without budget action.

The payment to the special account in 2020 is $554 million. Since award rates are legal minimums, loss of supplementation will mean job cuts to offset the current $554m of supplementation.

Funding for equal pay awarded by the Fair Work Commission should be embedded in the budget on an ongoing basis. It should continue, and not be separated out and left in legislation with sunset clauses.

On December 16th ACOSS put out call to the Morrison Government to protect equal pay funding and jobs at risk in the feminised caring sector. Together with NFAW, they have since asked to meet the Minister for Women. They have had no response.

In January the Australian Services Union—the union that ran and won the 2012 equal pay case—wrote to the Minister for Family and Social Services. Rather than responding herself, the Minister referred the letter to her department, which said ‘we will continue to engage with funded service providers to understand implications of the potential cessation of ERO supplementation payments’.

What does this mean for funding for thousands of community sector jobs? ‘Yes?’, ‘No?, ‘Partly?’ or ‘We’re looking for the file?’ The question is one of $554 million. The answer cannot be fudged.

These cuts would affect services to families and children, domestic violence services and other community services, including bushfire and bushfire-related homelessness support. Is the government proposing to support victims of fires and domestic violence by cutting $554 worth of support? Is it proposing to support equal pay by defunding the sector? This is a matter of paying equitably for valuable services.

The union and ACOSS will continue their campaigns. The have been joined by NFAW and WEL, and by alliances representing over 160 women’s organisations including the Equality Rights Alliance, the National Rural Women’s Coalition, the Harmony Alliance representing migrant and refugee women, the Australian Women against Violence Alliance, Domestic Violence Victoria, the Economic Security for Women Alliance, the Business and Professional Women of Australia, Women in Adult and Vocational Education, and Soroptimists International.

If you want to join us, you are welcome. Please

Tell ACOSS what the axing of the ERO might mean for your organisation
Use social media to voice your opposition using #FairFunding4FairPay
Contact the Federal Treasurer’s office: 9882 3677, josh.frydenberg.mp@aph.gov.au
Arrange a meeting with your local Federal MP

This post is part of the Women's Policy Action Tank initiative to analyse government policy using a gendered lens. View our other policy analysis pieces here.

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