Calls for 9% pay rise for ‘feminised’ industries

There have been calls for better remuneration for workers in industries dominated by women. Could this move help eliminate the gender pay gap?

The Australian Council of Trade Unions (ACTU) has called on the government to provide a pay rise of “at least” 9 per cent for workers in key feminised industries. These include early childhood education, education and health support services, veterinary care, and disability home care, to name a few.

The reasoning behind the rise is that the increase “would be a critical step in achieving equal pay for workers in occupations that historically have been undervalued based on gender”.

ACTU secretary Sally McManus commented on the announcement: “Achieving equal pay for women requires systemic change and targeted pay rises in industries traditionally dominated by women and historically very low-paid.”

“A 9 per cent pay increase will not only support families with cost-of-living pressures, it will also be a vital first step to properly valuing the work of working women doing critical work for our community, such as educating the next generation and caring for our loved ones.”

She continued: “When employers push for real pay cuts while enjoying record corporate profits, they are disregarding the struggles of working women in Australia. Equal pay and cost-of-living increases are good for workers and good for the economy.”

There have already been calls for a 5 per cent increase across all awards. According to ACTU, this extra 4 per cent for the predominantly female industries could see full-time care workers, for example, take home an extra $90 each week.

There will likely be some disagreement among union representatives and employers on the issue. It’s reported that the initial proposal from the Australian Chamber of Commerce was a 2 per cent rise. Meanwhile, the Australian Industry Group called for 2.8 per cent, calling the ACTU proposal “reckless”.

Yolanda Kerr, TDC Global’s head of growth APAC, discussed ACTU’s proposal, noting that decisions like this are needed to bridge the gender pay gap.

“While the recent proposal for a 9 per cent hike in the minimum wage across ‘feminised’ industries might seem extreme to some, it’s a necessary and urgent step towards bridging the gender pay gap. It directly addresses the systemic undervaluing of work traditionally performed by women and acknowledges the important, yet often invisible, contribution that these sectors make to our economy,” Kerr said.

“Despite the longstanding status quo, equal and fair remuneration must be sought across all industries. This increase can serve as an impactful mechanism to raise the status of ‘feminised’ professions, driving a culture of respect and recognition that is still greatly needed in many sectors. It’s an opportunity to break away from societal norms, which is a must if we want to make progress towards pay parity.”

Whether the government will side with unions, employers, or run the middle ground is unclear. With cost-of-living pressures becoming insurmountable for many, there will no doubt be staunch supporters on both sides of the fence.

Kerr added: “No doubt, taking this step forward will face its share of hurdles, and it may cause discomfort at first. People will find reasons why it can’t work, but as a society, we’ve got to move past the excuses for maintaining the current norm and start making real changes. There’s never going to be a perfect time in the economy to level the playing field, so why not do it now? Pay equity isn’t just about being fair; it’s about ensuring the sustainability and success of all members of Australia’s workforce.”