Unions, including the Health Services Union and the Australian Education Union, are pushing for a multi-employer agreement covering National Disability Insurance Scheme (NDIS) providers. The bid seeks to improve pay for hundreds of support workers and challenge the government’s funding model. This move, under Labor’s new laws, allows unions to potentially force the federal government into negotiations for additional funding to support wage rises.
However, the application, contested by regional providers in Victoria, has faced opposition, with providers claiming they cannot afford to engage in multi-employer bargaining. The application, made in November but not publicized until now, follows Labor’s controversial new multi-employer bargaining laws, effective since June.
Health and Community Services Union Victorian secretary Paul Healey emphasized that support workers have been kept on low wages using expired pre-Fair Work Act agreements. He stated the unions aim to secure fair pay rises in an industry where wages are already low and expressed concerns that NDIS funding is not keeping up with wages and conditions.
While unions have not yet considered using the laws to involve the Commonwealth as a funder, they pledged to work with the ACTU and the government to address bargaining issues. The Fair Work Commission has invited submissions from peak union and employer bodies and the Commonwealth, as the matter is contested.
Australian Industry Group chief executive Innes Willox criticized the union’s application, stating it unfairly involves small, not-for-profit disability support providers in complex legal proceedings. Many providers have expressed concerns about the ill-considered attempt to initiate multi-enterprise bargaining.
The unions’ application argues that providers share a common interest as they are substantially funded by the NDIS and have been using expired agreements. These agreements, referred to as “zombie agreements,” provide similar terms to employees, contributing to the undervaluation of work in the sector.
The outcome of this case could set a precedent, with concerns raised by industry leaders about the potential impact on other sectors. As the government seeks feedback on the recent landmark report on the NDIS funding model, unions continue to advocate for fair wages, prompting industry concerns and debates over the consequences of anti-business industrial relations policies.
