IEU helps win landmark day care pay rise

The federal Labor government will spend $3.6 billion to fund pay increases that will mean teachers in long day care centres throughout Australia get a 15% pay rise above the current rate in the Modern Award.

Pay in the sector will rise 10% in December 2024 and another 5% a year later. There is also a proposed 4.4% cap on fee increases for parents over the next 12 months.

IEU members and staff from Victoria and NSW supporting the early childcare push at the Fair Work Commission, 6 June, 2023.

The long day care sector provides quality early childhood education and care services to hundreds of thousands of children and parents all year round. Under the Modern Award, an experienced teacher in a long day care centre is currently paid $93,000 a year. The new top rate after the 15% increase will be over $107,000. For a highly feminised sector, this is a vital step towards closing the gender pay gap.

The 10% wage increase above the modern award rate from December 1 will deliver at least an extra $103 per week for a typical ECEC educator, while a 5% increase on December 1 next year will lift the overall increase to at least $155 a week.

IEU Federal Secretary Brad Hayes said the “historic” recognition of early childhood education professionals wouldn’t have been possible without years of union members fighting for fairer workplace laws.

“Collective bargaining is now available on an industry basis to thousands of female workers previously denied the opportunity to bargain for better pay and conditions.

“The IEU joined the United Workers Union (UWU) and the Australian Education Union (AEU) in seeking the nation’s first Supported Bargaining Agreement when new bargaining laws were introduced in June 2023. It was this union-led process that has ultimately secured the federal government’s commitment to fund a 15% pay raise for long day care workers.

“Fair pay and working conditions are a critical part of valuing our early childhood workforce. Union members and the federal government are to be commended for delivering this historic win that begins to narrow the gender pay gap in one of our most important industries.”

Prime Minister Anthony Albanese, Education Minister Jason Clare and Early Childhood Education Minister Anne Aly announced the funding in a joint statement.

"The wage increase will be tied to a commitment from child care centres to limit fee increases," the statement said.

"We want to make sure workers can be fairly paid without the costs being passed on to families."

Education Minister Clare said the government wanted to ensure the 15% pay increase "gets in the pockets of early educators" by requiring providers to have a registered industrial agreement.

The Fair Work Committee will help providers who need to set up between now and December.

The IEU is in discussion with the Government on how the funding will be distributed and the mechanisms to ensure the full increase in funding is passed on to teachers and educators as pay rises.

It expected this will occur through the proposed new multi-employer enterprise agreement, "which will include not only the pay rises but other improved conditions aiming to boost workforce attraction and retention, professionalism and service quality".