Landmark decision awards ‘undervalued and underpaid’ women workers a pay rise

Women workers in key industries have been awarded a pay rise after a wage review conducted by the Fair Work Commission.

Workers in women-dominated industries are set to receive a pay rise after a wage review conducted by the Fair Work Commission (FWC). Handed down yesterday (16 April), the commission granted that workers who fall under five priority awards deserve of a pay rise to remedy “gender-based undervaluation”.

Pharmacists under the Pharmacy Industry Award 2020 will receive a 14.1 per cent increase in their pay over the next three years. Early childhood education and care workers will see an award increase over the next five years, with a 5 per cent buffer to become operative from 1 August 2025.

In another major development, the commission is also considering a 35 per cent increase for health professionals, dental assistants, and pathology collectors.

As previously reported by HR Leader, the 2023–24 gender pay gap results revealed that nearly three in four (72 per cent) of all Australian employers pay men more, on average, than women – with men taking home $28,425 more on average per year.

The annual gender pay gap findings highlighted the disparity between men-dominated industries and women-dominated industries in terms of take-home pay, emphasising the significance of this decision by the commission.

Australian Council of Trade Union (ACTU) president Michele O’Neil welcomed the decision, crediting the Albanese government for laying the foundational pieces that allowed for these changes to come to fruition.

“Unions welcome [the] landmark ruling by the Fair Work Commission, which recognises that working Australians should not be undervalued and underpaid because of their gender. For too long, jobs where the majority of workers are women have been paid less,” O’Neil said.

“Discounting women’s work has contributed to the gender pay gap and worsened cost-of-living pressures for households.

“This ruling is only possible because working women in their unions campaigned for stronger laws to lift wages in undervalued sectors – laws that the Albanese government introduced, and that Peter Dutton and the Coalition voted against.”

Despite its gleefulness, the ACTU was cautious about the changes pertaining to those who are covered by the Social, Community Home Care and Disability Services (SCHADS) Industry Award 2010.

The commission deemed the SCHADS Award unfit due to a number of significant issues and moved to propose a single classification structure, which the ACTU claimed “will have unintended consequences that could disadvantage some workers”.

The Australian Services Union (ASU), United Workers Union (UWU), and Health Services Union (HSU) filed an application proposing to implement an equal remuneration order (ERO) to eliminate gender undervaluation for workers under the SCHADS while also proposing to properly define job titles. However, the commission dismissed the application.

This has spurred union pushback, fearing that the commission’s decision favours simplification over fairness.

“We echo union concerns that the proposed new classification structure in the SCHADS Award may unintentionally disadvantage some workers. We hope that it is carefully considered by the Fair Work Commission,” said the HSU in a statement.

It’s also noted in the decision that the Australian Industry Group (Ai Group) filed a submission pertaining to the SCHADS, rejecting claims of systemic gender undervaluation in SCHADS Award classifications – opposing the wage increases for NDIS-funded disability workers unless explicit government funding is pledged in support.

“… It would go beyond mere rectification and lead to large cohorts of employees being reclassified at substantially higher rates of pay for which no funding commitment has been made by the Commonwealth,” said the Ai Group’s submission.

Regardless of the disagreements with the new classification, O’Neil was still celebratory of the decision, arguing that these changes wouldn’t be possible with a Dutton-led government.

“With further submissions due after the election, these pay rises could be at risk if Peter Dutton is elected,” O’Neil said.

“The gender pay gap is closing three times faster under the Albanese government than under the previous Coalition government – and that shows who wins elections matters.”