Labor funds $3.6b pay rise for childcare workers
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The news: Prime Minister Anthony Albanese has agreed to fund a 15%, $3.6 billion pay rise for childcare workers over two years in return for a commitment from their employers to limit fee increases over the next 12 months.
The context: The move, which Albanese committed to in principle at the 2022 election, is aimed at addressing cost-of-living concerns, boosting pay in the female-dominated industry and achieving Labor’s goal of delivering universal childcare.
The increase will be phased in over two years with a 10% rise from December this year and then and then an additional 5% from December 2025.
In return for the increased pay, childcare centres must agree not to raise fees by more than 4.4% over the next 12 months from today. This will help Labor politically in limiting childcare fee increases until the next election, which is due by May next year.
This announcement comes after the government joined negotiations with unions and childcare centres at the Fair Work Commission in the first example of “pattern bargaining” made possible by the Secure Jobs Better Pay Act passed last year. The legislation was criticised by some employers for giving more power to unions at the negotiating table.
What they said: "Early educators shape lives and change lives. We can never thank them enough for what they do — but we can make sure they are properly valued and fairly paid. Today our Government is doing just that,” Albanese said.
“Knowing your child is safe, happy and learning alongside their friends is priceless. Giving the next generation the best start in life is essential. Today we deliver fair pay for the people who make this possible.
“Importantly, this agreement will also keep fees down for families. Our cheaper childcare policy already delivered increased subsidies to over a million families. This will provide even more cost of living relief.
“This brings together the priorities that drive our government: real help with the cost of living, fair wages for workers, investing in the future and economic equality for women.
“This is a great day for everyone who cares about childcare: the children who thrive in it, the parents who rely on it and the dedicated workers who deliver it.”
The source: Prime Minister's Office
