Pay rises threaten agency jobs, work

JOHN VAN KLAVEREN
EMPLOYMENT and services will be cut if government fails to fund recent pay rises in the community sector, Geelong region agencies have warned.
Encompass communications officer Silje Eidsnes said trying to cover the rises “would be a problem” for the agency.
“We are non-profit and we do have limited funds, so we’re waiting for confirmation from State Government that it will increase its funding.
“If it doesn’t cover the funding it will have an effect on our employment levels and services available.”
Ms Eidsnes said Fair Work Australia’s decision to increase community sector pay was “a good thought” that would boost staff morale.
“But it all comes down to the decision by the State Govern-ment.”
Fair Work Australia announ-ced rises of 19 to 41 per cent as well as a four per cent lift in loadings over the next eight years for more than 150,000 community sector workers.
The decision was based on Federal Government and union submissions that the rises would help narrow a pay gap between men and women.
Gateways chief executive officer Rosemary Malone said the decision was a “step in the right direction” for staff working under awards.
“As our major funding is from government, we’ll need to see whether government builds this into its cost structure,” she said.
“It’s important that we have a skilled and qualified workforce and this would be an investment in the future of the workforce.
“We understand from a government point of view that it has competing interests but we need to attract and retain the right people and recognise their contributions.
A State Government spokes-man said the decision had major financial and service provision implications for Victoria.
“We have already made a financial commitment of $200 million over four years,” the spokesperson said.
“However, it is vital the Commonwealth Government guarantees to provide substantial and ongoing financial commitment to meet the heavy costs imposed on state governments and non-government organisations as a result of the Common-wealth’s role in this case.”