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Early childhood workers awaiting $12 million pay rise

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It should be as simple as ABC or 123. If our children are considered our greatest asset, then those who kickstart their education should be valued highly.

Sadly, for years early childhood workers say they have felt ignored when it comes to wage increases, earning minimal income yet dealing with additional pressures.

And, all the while the cost of care has been increasing for parents. 

Now NSW is facing a shortage of early childhood workers with many leaving the sector feeling burned out and unappreciated. 

It’s not a new story 

In August 2021 the United Workers Union polled almost 4,000 current and former early educators about their job satisfaction levels. 

At the time more than a quarter of educators reported they were planning to leave the sector within 12 months and of those educators who did plan to stay, almost half (46%) were thinking about leaving ‘all of the time’ or ‘most of the time’.  

The majority of workers (70%) told the survey they were ‘always’ or ‘often’ worried about their financial situation, 81% of centre directors said they had difficulties recruiting across the industry, and providers said new enrolments had been capped to deal with staff shortages. 

Two thirds of early childhood workers in August 2021 said they were leaving the sector because they could not afford to stay. 

The union claimed the sector desperately needed 40,000 more staff by 2023 to meet growing demand. 

“The remuneration for the responsibility asked of educators is ridiculous. I could get more money stacking shelves at Coles,” a director said at the time. 

And, while the community faced uncertainties surrounding the Covid-19 global pandemic, early childhood workers continued to service the community as best they could

“The message from early educators across the country is clear: they are at breaking point,” UWU’s early education director Helen Gibbons said in a statement dated August 2021. 

“There is no early childhood sector without early educators, and they simply can’t afford to stay and hold it together anymore.” 

By February 2023 early childhood workers were still pushing the then-Liberal government for a 25% pay rise when it was announced fees were set to be reduced for attending children. 

In April 2023 the desperate need for a pay rise within the sector was once again raised in Parliament. 

Cost of childcare services rise faster than inflation

In July 2023 an ACCC analysis confirmed that childcare fees had risen faster than inflation and wage growth during the past four years.

While centre-based day care and outside school hours care rose 20%, home care costs were up 32%.

The same ACCC report found households with the lowest incomes were spending between 5 to 21% of their disposable income on childcare despite receiving a greater government contribution and paying less out-of-pocket expenses.

Half of households in the highest income bracket spend about 2 to 9% of their disposable income on childcare.

economic stimulus package

Other sectors win push for pay rise

In July 2023 aged care workers were afforded a 15% pay rise. 

By September 2023 it was announced NSW teachers would soon start receiving their largest pay rise in 30 years, making them the highest paid school educators in Australia. 

A $12.2 million promise

On Monday 9 October, the NSW Government announced it would be boosting the state’s early childhood sector workforce by $12.2 million. 

The funding will come in the form of scholarships in what it says is “beginning the practical work to create a pipeline of educators for this vital sector’”  

A target of 1,700 scholarships will be made available to those already working in the sector wanting to up-skill, those wanting to become early childhood educators, and those wanting to gain Outside School Hours Care (OSCH) skills. 

It is hoped this will increase the workforce and help retain those already working as early childhood educators.  

Deputy Premier and Minister for Education and Early Learning Prue Car said the funding is expected to return the sector to capacity.  

“Backing the future career of those who educate our littlest learners is one of the best investments a government can make,” she said.  

“There is a shortage of early childhood workers across NSW, and this is just one of the measures the Minns’ Labor government will deliver to help tackle this ongoing issue.   

“This scholarship program is open to people already working as early childhood educators, and for those who may want to take the plunge and start a new career in the sector.   

“The government is committed to building capacity and resilience in our early childhood educator workforce.” 
 
Funding announced 9 October includes: 

  • Scholarships of up to $25,000 for ECEC teachers studying a Bachelor or Master degree in teaching with an early childhood education specification 
  • Scholarships of up to $15,000 for relevant Graduate Certificates or Graduate Diplomas 
  • Scholarships of up to $5,000 for ECEC educators studying a relevant Diploma in ECEC or School Age Education and Care 
  • Scholarships of up to $3,000 for students earning a Certificate III in ECEC, OSHC 

The government has also scrapped application rounds, allowing current and prospective students to apply freely throughout the year. 

Whether $12 million cave save the early childhood education sector remains to be seen.

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