NSW pledges $1bn to community workers - Sydney Morning Herald

AAP

NSW Premier Barry O'Farrell has announced the state government will contribute $1 billion to fund pay rises for 27,000 community services workers under changes dictated earlier this year by Fair Work Australia (FWA).

Mr O'Farrell on Thursday said that under the state's commitment, thousands of workers employed by 1400 non-government organisations would receive pay rises of between 23 and 45 per cent over the next 10 years.

Fair Work Australia in February handed down its landmark decision to award equal pay for those in the social and community services sector, with the commonwealth so far pledging $2.8 billion nationally to the increase.

"The NSW government has consistently said that we will pay our fair share of the wage increase, and the NSW government has stood by that commitment," Mr O'Farrell told reporters in Sydney.

The first of the pay rises will take affect from December 1.

Workers in the community sector will receive on average a $20-a-week pay rise from next month.

"Places like House with No Steps, the Salvation Army, Mission Australia, will benefit from this, and they deserve to benefit because they provide the extraordinary service to communities across NSW," Mr O'Farrell said.

"They work with the most vulnerable in our community, they do important work that others are unable or won't do."

However, Mr O'Farrell lashed out at the federal government for providing funding of only $199 million to the 27,000 community workers, or 20 per cent of the increase, saying Canberra was not paying its fair share of the pay rise.

"The state government has taken a decision - we are not going to delay these increases for these workers with vulnerable people any longer," Mr O'Farrell said.

"But it is a disgrace that the federal government won't accept its fair share. It is particularly a disgrace when they will claw back additional revenues because as these wages increase, income tax liabilities to the commonwealth government also increase."

NSW Ageing and Disability Services Minister Andrew Constance said the federal government had left the state with a $70 million shortfall over 10 years, which had to be met by the NSW government.

"We are talking about workers who are the amongst the lowest paid workers in our community," Mr Constance said.

"At least the state government has come to the party, and it is time that the Gillard government did likewise.

"We want to see the commonwealth come back to the table and meet the shortfall."