Childcare workers cancel strike after government backs pay rise extension
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Childcare workers will no longer go ahead with planned strike action in July after the federal government agreed to extend funding for a 15 per cent wage increase for another 18 months, in a $3.6 billion move.
The pay rise, first introduced in 2024, currently supports around 200,000 early childhood educators. It was due to expire in November, raising concerns across the sector.
The United Workers Union had pushed for action, arguing the government had left the future of the wage boost unclear in the May budget. Providers also warned that without ongoing support, fees for families could rise or services could lose staff.
The government says the extension will bridge the gap until broader Fair Work Commission changes on gender-based undervaluation fully phase in by 2029.
Education Minister Jason Clare said the funding is part of wider childcare reforms, including improving access, expanding services, and reviewing long-term workforce needs. He also indicated further decisions on support beyond 2029 will be considered.
The funding comes with conditions. Childcare centres must meet national quality standards and limit fee increases for families.
The government says the initial wage boost has already helped lift staffing levels, adding about 20,000 workers and reducing vacancies significantly.
It also argues the increase is improving retention in a sector where surveys previously showed many workers were considering leaving within a few years.
Under the current plan, the wage support will continue until 2028, while the broader Fair Work Commission wage adjustments will be phased in until 2029.
Officials say the aim is to avoid any sudden drop in pay for workers, while ensuring the sector remains stable and affordable for families.
Source : ABC News
More updates to come on AusNewsLanka.
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