Equal Remuneration Order Supplementation
The Equal Remuneration Order
On 1 February 2012, the Fair Work Commission (formerly Fair Work Australia) handed down its historic decision on the Australian Service Union's application for an equal remuneration order in the social and community services industry.
This decision affects workers who are employed under the Social, Community, Home Care and Disability Services Industry Award 2010 (SACS Modern Award). Specifically, the decision affects those workers classified under the following Schedules:
- Schedule B – Classification Definitions - Social and Community Services Employees
- Schedule C – Classification Definitions - Crisis Accommodation Employees
The Equal Remuneration Order (ERO) provides wage increases of between 23 and 45 per cent over the next 10 years. The first ERO supplementation payment was made in December 2012.
FACS is committed to passing on supplementation to eligible service providers to assist them to pay SACS workers a fairer wage.
Confirmation Notices submitted by providers in 2012/13 will be used to establish eligibility for future supplementation payments. FACS acknowledges that eligibility for supplementation may change over time. Service providers should inform FACS when their circumstances change.
The confirmation process in 2012/13 also asked service providers to assure FACS that supplementation would only be used to meet wage increases and any unexpended funds would be returned. This assurance will also apply to future supplementation payments.
The calculation of SACS-ERO supplementation is based on a funding allocation formulae agreed with the Commonwealth Government. This calculation formula is applied consistently across FACS funded programs.
In 2012/13 FACS established a hardship claims process to allow service providers to submit an appeal. This process allowed FACS to re-examine how the standard calculation formula was applied and make adjustments to the formula.
Any adjustments approved in 2012/13 will carry forward into future supplementation calculations.
Service providers can submit a hardship claim in 2013/14 if they can demonstrate that the standard formula is not representative of their business and that there is a substantial financial impact. A fact sheet (PDF) on the hardship claims process is available for service providers.
How do I find out more information?
The following peak organisations are also available to provide general advice to service providers. This should not be taken as formal advice on specific industrial relations matters.
Alison Peters Director Council of Social Service of NSW (NCOSS) Phone: (02) 9211 2599 ext. 107
National Disability Services NSW
Phone: (02) 9256 3118
Director – Operations & Projects
Youth Action & Policy Association
Email: firstname.lastname@example.org Phone: (02) 8218 9800
Andrew McCallum AM
Chief Executive Officer
Association of Children's Welfare Agencies (ACWA)
Phone: (02) 9281 8822
Chief Executive Officer
Aboriginal Child, Family and Community Care State Secretariat (AbSec)
Phone: (02) 9559 5299