Pay will be cut and it's worse news if you're female - the Gender Pay Gap will increase
Rate capping will affect our capacity to negotiate decent pay increases for our members. Over recent years we have seen pay increases fall well below 4% per annum, which used to be the norm. Most Councils in this round of bargaining are already using rate capping as an excuse to keep pay increases down.
Some Councils want to peg pay increases to CPI which will result in a pay cut in real terms.
Rate capping will widen the Gender Pay Gap. When Councils are struggling to make ends meet the services which are most vulnerable include Child Care and Home & Community Care. Both Child Care Workers and Home & Community Care Workers are paid significantly higher in Local Government than they are in the private or not-for-profit sectors. They also provide a superior standard of care.
Rate capping will result in Councils getting out of the provision of theses services. They will be picked up by private and not-for-profit providers who pay significantly less, often the award rate. This will contribute to the increasing Gender Pay Gap. READ MORE
The ASU won an historic equal pay case for Child Care Workers in 2001. The Andrews Labor Government claims to support Gender Pay Equity. The ASU welcomed the recent announcement by the Government that all appointments to Government Boards would be at least 50% women. We call on the Government to support Gender Pay Equity in Local Government and not let the women of our state down.