Occident Prone

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Posts Tagged ‘child care’

How can you underpay the lowest paid workers?

Posted by occidentprone on September 23, 2008

The WA economy is characterised as booming, no question. A lot of workers are rolling in it. This we know.

We also know (but may not want to acknowledge) there are those who aren’t keeping up. The elderly, the disabled, the unemployed. Even people who in low-paid jobs, who work for love or sense of duty or because they have no other skills.

So why oh why are some employers screwing the people who work where many others won’t – in the caring industries. Whether it is deliberate or accidental is up for debate. But carers in child care and aged care homes are being diddled, reports ABC.

About 90 West Australian child care workers will be reimbursed $35,000 after random audits found they were being underpaid.

The Australian Workplace Ombudsman randomly audited 31 WA child care providers and found 19 of them were underpaying employees.

Alfred Bongi from the Ombudsman’s office says WA was the worst offender and investigations into other child care services are continuing.

“A number of these employers have been issued with breach notices but in Western Australia so far they have all voluntarily complied,” he said.

“We are continuing investigations on three premises.

“We do these campaigns particularly to focus on vulnerable workers and we selected this industry because of the number of trainees and apprentices who work there.”

The Ombudsman’s report outlined their target:

One of the reasons why the aged care and child care industries were selected for audit was the understanding that they employ a high percentage of workers that the Workplace Ombudsman would classify as vulnerable. This proved to be the case with women being the predominant workers in the aged care industry and women and young workers being predominant in the child care industries.

Read the report further for a summary of issues in WA:

The campaign has supported the rationale behind Western Australia’s selection to undertake audits in the child care sectors with rates of pay and penalty rates as the breaches that were the most commonly identified issues in the industry.

The qualitative information collected highlights that the predominant findings (rates of pay) were due to a lack of understanding/knowledge of the pay scale increases that occurred in October last year. However, in some cases it was due to incorrect classification of employees based on their length of service in the child care industry and their qualifications.

… Another common finding was that employers were not engaging their full-time employees for the required hours under the industrial instrument. Both instruments in this case required a 38 hour week to be paid however, at least 6 employers were found to be in breach of this requirement and back payments for some of these businesses are still underway.

An unusual finding was that an employer was only paying one employee the rate that the business was subsidised per hour under the Commonwealth ‘Inclusion Support Subsidy’. This subsidy is a contribution towards the costs associated with including a child or children with ongoing high support needs in child care and is part of the Australian Government’s Inclusion and Professional Support Program. It does not void an employer from paying an employee their appropriate minimum rate of pay payable under the Act. The employer is currently in the process of rectifying this underpayment.

In Western Australia only 6 businesses (18%) were found to be complying. This is believed to be the lowest compliance figure for a time and wage campaign in Western Australia since March 2006. However, those that were appeared to be up to date on their knowledge of their employer obligations and usually had direct dealings with an external body such as Chamber of Commerce and Industry or a union such as the LHMU.

Seriously, this is bullshit.

And particularly here in WA right now where many workers are well paid and unemployment is low. 

For employers and workers alike, I give you the Workplace Ombudsman’s website: http://www.wo.gov.au  You can register for an email alert of changes to the published pay scales.

And dear readers, if your loved one, young or old, is in the care of a carer, it is up to you to make sure the carer is being treated as well as you would like Cupcake / Pops to be. That’s caring.

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