The Push for a 25% Pay Rise

Financial Wellbeing
 26 Jun 2023

Educators’ wages may be on the up, thanks to some brand-new laws around bargaining and a committed group of childcare stakeholders.    

BY HEJIRA CONVERY, KINDICARE

JUNE 26 2023

Early childhood educators are greatly valued by families and providers, but this feeling isn’t always reflected in their finances.  

Many educators are on minimum Award rates, and although these rates are rising by 5.75%, and plenty of providers pay above Award wages, lots of early childhood workers aren’t being paid enough to live comfortably and work happily.

Poor salaries are contributing to widespread staff shortages at services, and really, a substantial wage boost is needed.  

One that easily covers cost-of-living expenses, encourages educators to stay in the sector, and entices passionate new people to pursue an early learning career. 

Fortunately, there is some promising news on the wage front, because on 6 June 2023, the government’s new Multi-employer Bargaining Laws officially came into effect. 

There’s a lot to them, but basically, they allow low-paid sectors, including the childcare sector, to negotiate better pay and conditions as part of something called ‘supported bargaining.’ 

The new laws mean that educators, employers and the government can come together to negotiate wage movement, and some key players have wasted no time in making a Fair Work Commission application to start supported bargaining. 

On 6 June 2023, the United Workers Union, Australian Education Union and Independent Education Union put in a formal application for supported bargaining authorisation (making them the first ever applicants under the new laws). 

The Australian Childcare Alliance, Community Early Learning Australia, Community Child Care Association and leading childcare provider, G8 Education, join them as bargaining representatives under the application, which means they’ll all work together to negotiate a wage improvement for early childhood teachers and educators.  

As a childcare funder, the Federal Government can also be required to actively participate in the negotiations, and Helen Gibbons, Early Education Director at the United Workers Union says, “Educators are calling on the Federal Government to do their bit and make a public commitment that they will come to the bargaining table prepared to fund an increase to educators’ wages.” 

How much they might be willing to fund isn’t certain, but the unions are pushing for a 25% wage rise for early childhood teachers and educators.  

Helen has explained that a, “Significant uplift is required,” and we know that from July, educators will be paid 15% less than aged care workers and already earn less than retail workers.  

A 25% pay rise would definitely increase the appeal of an early learning career and help to fill all those vacant positions. however, negotiation goes to the heart of supported bargaining and we’ll have to see what wage movement all parties can agree on.  

In some corners, there’s concern that a 25% pay rise could lump employers with ‘unsustainable costs,’ however, the bargaining representatives are looking forward to brokering a good deal for everyone, and G8 Education is an employer that’s pleased to be part of the supported bargaining process. 

G8 Education operates more than 430 early learning centres around the nation and they’re committed to a collaborative approach around wages.  

They say they have voluntarily decided to be involved, “So that we can better work with the sector – including providers, unions and workers – to deliver an outcome that recognises the value and significant work of those working on the frontline in our sector.”  

“We want to attract and retain excellent team members to support delivery of the best outcomes for the children in our care. We look forward to advocating, along with others, for government funding to support higher wages and for greater recognition of the important role our sector plays in social and economic outcomes.” 

The Fair Work Commission is yet to authorise the unions, peak bodies and provider to start the bargaining process (these things take time), but we hope the negotiations are fruitful for educators, and the United Workers Union is quietly confident.   

Helen says, “We are positive about the future and pleased to have an opportunity to negotiate a meaningful pay rise for Australia’s hard-working and irreplaceable early childhood educators.”  

“As soon as the Fair Work Commission provides authorisation, we will begin negotiations with the other bargaining representatives, virtually and in person, and hope to find a workable solution to the problem of low early learning wages.” 

A substantial pay rise would certainly be great news for educators, and if you live in a childcare desert, send your child to a short-staffed service, or are just worried about the stream of experienced people leaving the sector, you’ll know that a solid wage rise is great news for families as well. 

Stay tuned!