Gender Undervaluation decision set to revamp awards in feminised industries

Prior to Easter, the Fair Work Commission (FWC) handed down its decision in the Gender Undervaluation – Priority Awards Review process, which commenced last year on the Commission’s own motion, and flowed from observations borne out of the 2023-24 Annual Wage Review (see our related article). The provisional views expressed in the comprehensive decision of 16 April stand to significantly impact wage rates and classifications contained within several Modern Awards applicable in highly feminised industries, including the Social, Community, Home Care & Disability Services Industry Award 2010, the Children’s Services Award 2010 and the Health Professionals & Support Services Award 2020.

Social, Community, Home Care & Disability Services Industry Award 2010 (SCHADS Award)

In response to a joint application of relevant unions which primarily sought to envelope all disability services employees within the social & community services classification stream (thereby abolishing the separate ‘home care – disability care’ classification stream) and incorporate the Equal Remuneration Order (ERO) rates of pay into the body of the award, the Full Bench of the FWC concluded, “the evidence and submissions before us make it amply clear that the current system of classifications and rates of pay in the SCHADS Award is not fit for purpose”. However, the Full Bench went on to identify they “do not consider” the proposed variations in the joint unions’ application “constitute an appropriate remedy”. Instead, the Full Bench expressed the provisional view that the existing separate classification streams should be combined into a “single new classification structure”, primarily based on the current Schedule F – Home Care Employees – Aged Care, which was introduced from 1 January 2025.

ES Subscribers can refer to our detailed email bulletin of 16 April 2025 to view the proposed classification structure, which the Full Bench argued “would implement minimum wage rates which will eliminate the gender-based undervaluation of work and ensure equal remuneration for work of equal or comparable value” and therefore render the ERO redundant.

In addition, the Full Bench also expressed the provisional view that inclusion of the Family Day Care classification stream within the SCHADS Award has always been an “anomaly”, and that such work would be more appropriately covered by the Children’s Services Award 2010 (see below).

Conferences have been scheduled for 4 and 17 June to further explore the provisional views pertaining to the proposed variation of the SCHADS Award, with the FWC releasing a discussion paper setting out key guiding principles, including emphasising that no employee will have their pay reduced when they move from the old structure to the new one (once finalised). The discussion paper also poses various pertinent questions such as when the new arrangements should take effect and whether the new classification structure and attaching wage rates should be phased-in, with express consideration given to “the funding restraints on SCHADS employers” and, whether other award provisions (such as minimum engagements, client cancellation, etc) will require refinement as a result of the implementation of a new classification structure.

In related news, in early-April the Albanese Government pledged “to support pay increases and better career pathways” for community services and disability workers; a commitment made pending its re-election and days after the ASU launched its campaign to secure government support for a “fair, future-ready” SCHADS Award.

Children’s Services Award 2010 (CS Award)

With respect to Children’s Services Employees (CSE’s) under the CS Award, the Full Bench was satisfied that CSE’s holding a relevant Certificate III deserved to have their rates aligned with increased rates secured for workers in the aged care sector as part of the Aged Care Work Value Case. This outcome would ultimately flow an increase of 23% on to the existing CSE Level 3.1 classification. However, the Full Bench observed, “we do not consider that this should result in a proportionate increase to all rates of pay in the existing classification structure for CSEs”.

In the alternative, the Full Bench expressed the provisional view that the existing classification structure of the CS Award should be replaced with a “simplified classification structure which is substantially based on the qualifications framework for the ECEC sector” which would attach increased rates of pay (proposed to be phased-in over five years, commencing 1 August 2025*, with an initial increase of 5%). See paragraphs [557] – [565] of the full decision for detail. The Full Bench also proposes to abolish the existing qualifications allowance (clause 15.6 of the CS Award) for Directors or Assistant Directors who hold a Graduate Certificate in Childcare Management or equivalent on the basis it is no longer relevant.

The proposed classification structure recognises some categories of work within the Family Day Care sector (as is the case currently under the CS Award) but the FWC has invited submissions on whether it is necessary to add further family day care roles at other levels in the CS Award structure, as proposed, in order to fully implement their provisional view that such work should be removed from coverage under the SCHADS Award (see above). Note: The Full Bench has since elected to defer this issue (see our progress update below).

The Full Bench acknowledges the critical role Commonwealth funding will play in facilitating the proposed variations to the CS Award and implementing increased minimum rates for the ECEC sector. Further FWC proceedings in respect of these provisional views are yet to be programmed.

*Unless the Full Bench is persuaded to make the proposed wage increase retrospective, this operative date is unlikely, with final stage proceedings to determine this matter not scheduled until late-October 2025 (see progress update below).

Health Professionals & Support Services Award 2020 (HPSS Award)

Within the HPSS Award, the Full Bench considered measures to address gender disparity within both the Support Services and Health Professionals classification streams.

Support Services

In respect of Support Services employees, both Dental Assistants and Pathology Collectors stand to benefit from the Full Bench’s provisional views, which would see the classification levels of these workers realigned within the existing 7-level classification structure.

The Full Bench proposes to see the role of Dental Assistant realigned with Level 1 (unqualified, less than 3 months’ experience); Level 5 (unqualified, has completed on-the-job training); Level 6 (Cert III qualified or equivalent); and, Level 7 (Cert IV qualified or equivalent), resulting in wage increases as high as 9% for Cert III qualified Dental Assistants. See paragraphs [289] – [290] of the full decision.

Similarly, for Pathology Collectors, it is proposed to realign their indicative roles in the existing Support Services classification structure to Levels 5, 6 and 7, achieving wage increases as high as 10.9%.

Health Professionals

Turning to employees classified as Health Professionals, the Full Bench proposes to establish a “new, simplified classification and minimum wage rate structure” which would provide for an employee’s classification level and minimum rate to be determined with regard to the AQF level of their qualification, and years of relevant experience. The Full Bench also expressed the provisional view that “there should be higher classifications for health professionals in specialist, supervisory and managerial roles”, proposing a separate four-level classification structure to account for “Specialist”, “Supervisor” and “Senior Manager” functions, with applicable rates ranging from $1931 – $2500 per week.

If implemented, the proposed replacement classification structure would result in wage increases of between 16-30% for employees with an AQF 7 qualification (such as physiotherapists), and between 18-35% for employees who hold an AQF 9 qualification (such as psychologists). See paragraphs [177] – [179] of the full decision for more detail.

Proceedings relating to the provisional views in respect of the HPSS Award have been scheduled for 20 May.

The full decision of the Full Bench can be downloaded from the FWC website here.

Progress Update

In July, the Full Bench settled on Hearing dates to finalise the above matters before the end of the year (with the exception of award coverage of Family Day Care employees, which has been deferred) – see our related news post.