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Category: Government and Politics / Federal Government / Hospitality / Indigenous Policy / Community and Society / Indigenous (Aboriginal and Torres Strait Islander)

Coalition accused of widening the gap with 'horrific' pay offer for Indigenous company

Tuesday, 12 Apr 2016 16:10:09 | Anna Henderson

The public sector union has accused a federally-owned Indigenous accommodation service of making an "horrific" and "meagre" pay offer to staff.

Key points:

  • Union blasts federally-owned hotel company for offering 1 per cent pay rise
  • AHL has high percentage of Indigenous workers
  • Company says it cannot offer higher wages without cutting jobs

Staff at Aboriginal Hostels Limited (AHL) face a pay deal that contravenes the Coalition's commitment to Closing the Gap, according to the Community and Public Sector Union (CPSU).

The CPSU has blasted the company for offering what equates to a 1 per cent pay rise each year over the next three years.

The union said it was a "meagre" amount for staff who operate 47 facilities across the country providing accommodation for Indigenous Australians going to school, finding work and attending medical appointments.

The CPSU argued the offence was compounded because AHL has the highest level of Indigenous staff in the public sector, at 67 per cent.

"Aboriginal Hostels has been starved of adequate funding and now the Government appears to expect these workers to make up the shortfall out of their own pockets," CPSU deputy secretary Beth Vincent-Pietsch said.

"The root cause of this horrific bargaining situation is the Government's public sector bargaining policy."

"It's telling that while Prime Minister Malcolm Turnbull and his colleagues publicly claim they are committed to Closing the Gap for Indigenous Australians, what's being proposed in this case will do absolutely the opposite and further widen the gap between Indigenous and non-Indigenous Commonwealth workers."

AHL: higher wage increases would cost jobs

AHL has released a statement defending its position, arguing it is unique among government entities because it is a Commonwealth-owned company that must operate within the budget provided by the Federal Government.

"AHL has carefully considered its financial position over the next three years and this offer represents the highest offer AHL can afford without compromising services at our hostels and to our clients," the statement said.

"AHL's proposed Enterprise Agreement offers a wage increase of 2.5 per cent within the first six months depending on commencement date, and an additional 0.5 per cent in July 2017."

It warned a higher pay offer would mean shedding staff or services.

"Any pay offer must be funded from savings within the organisation without a decrease in services to our clients or job losses," the company said.

"AHL is committed to ensuring that any offer does not affect the delivery of frontline services.

"It is not reasonable to link AHL's enterprise bargaining process with the Government's Closing the Gap agenda. AHL, like all Commonwealth agencies, is required to work within the Government's bargaining framework."

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