National Wage Increase Puts Pressure on SA Government to Boost Community Sector Funding
The South Australian Council of Social Service today welcomed the national wage increase of 3.5% which will apply to community sector workers under the Social, Community, Home Care and Disability Services (SCHADS) award, but said that it highlighted the need for indexation of state government funding of community services to increase to cover the wage rise. The community services sector is already overstretched and underfunded, and unless funding is increased, today’s national wage increase risks seeing cuts to vital services.
SACOSS’ state budget submission called for a 3.3% catch-up increase in government funding for the sector to make up for wage cost increases over the last four years, and today’s wage increase will just add to enormous financial pressure on the sector.
The standard indexation rate for state government funding is 2.5% per year, but with wages being around 75% of community services expenditure, that increase will simply not cover the cost of the national wage increase let alone many other service costs that also continue to rise.
The community services sector delivers a wide range of services that services to people with disabilities, financial counselling for those in financial stress, supports for people dealing with domestic and family violence, mental health or legal issues, homelessness, addiction, and provides family and child protection support.
Quotes attributable to Ross Womersley, SACOSS CEO
Most workers in our sector are covered by awards or the minimum wage and so we welcome this national wage increase for a sector which is traditionally both highly feminized and low-paid. But we really do need the government to step up and fund these basic cost increases because nobody wants to see services cut.
We need to see an immediate funding increase in this week’s state budget. In the longer term, we look forward to working with the Department of Treasury and Finance to ensure that the indexation formula applied to state government funding is fixed so that it can automatically adapt to wage changes and not leave the sector with uncertain funding each year.