Business groups unhappy with Fair Work Australia’s decision

In a decision that has sparked an angry reaction from business bodies, Fair Work Australia has approved pay rises of between 19% and 41% for workers in the social, community and disability services industry (SACS), having previously found that gender played a role in the sector’s low pay rates compared with pay rates for state and local governments employees performing similar work.

In a majority decision by the full bench of the tribunal, the ruling means that the 150,000 workers in the not-for-profit sector will receive pay levels of between $42,000 and $84,000 – equivalent to rates in a Queensland award – phased in over eight years from December 1, 2012. The pay rises range from $6,324 to $24,346.

The pay rises are in addition to annual wage review increases. The implementation is two years longer than previously proposed six years.

Kathryn Dent, People, Culture and Strategies director, predicts the ruling will prompt other groups to assess their own circumstances, adding an appeal of a full bench decision is unlikely, unless there is a jurisdictional error.

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