“It’s essentially free money”: Knox among councils refusing to support childcare worker pay rise

💰 Passing up the chance: Councils across Melbourne’s eastern suburbs are running out of time to apply for the federal government’s work retention payments for early childhood education and care workers. The payments include a wage increase of 15 percent above the award rates, and the Australian Services Union (ASU) is rallying in Knox on Monday evening, demanding councils submit an application as soon as possible.

📚 Burnout leaders: Teachers, childcare workers and support workers experience a higher risk of burnout than other jobs across the country, due to a low income, high expectations and insufficient funding between centres.

🪧 Rally up: Representatives from the Tasmanian/Victorian branch of the Australian Services Union will be hosting a rally at Knox Civic Centre in Wantirna South on Monday evening, calling on Knox Council to apply for the federal government’s Worker Retention Payment scheme.

👶 A pay bump for childcare workers: As part of temporary support passed through Parliament last November, the Department of Education is delivering a Worker Retention Payment for two years.

The payment includes a wage increase of 15 percent above the modern award rates and a minimum additional 20 percent of funding for other eligible costs providers and councils incur.

Eligible childcare workers set to receive the pay bump include early childhood teachers, other educators, cooks, co-ordinators, room leaders, support workers, trainees and apprentices.

Applications for the funding program have been open since last October, with applications for backdated payments now closing on Tuesday September 30. 

🙅‍♂️ No payment here, thanks: Knox and Monash councils have refused to accept the payment, while the Whitehorse and Yarra Ranges councils have not indicated whether or not they would accept it.

A spokesperson for Knox Council said the council recognised the need for an increase to the industry award rate and had “paid our educators well above the award… for many years.” 

“All our educators receive annual wage increases under the Knox Enterprise Agreement.

“Knox is committed to further investigating the terms and conditions of the grant with the Department (of Education).”

📝 What the payment changes look like: The minimum increase in hourly wages ranges from $2.41 to $5.26, depending on the level and type of employee. These limits will be bumped up by a further five percent from December 1.

🧑‍🧑‍🧒 No cost to families: To ensure the cost of the wage increase is not passed on to families, providers who receive the payment must limit fee growth and set a cap of 4.2 percent for the 12 months following August 8 2025.

🔨 Keeping the status quo in Knox: Knox Council operates two locations of the Knox Children and Family Centre - one in Wantirna South and one in Bayswater, including long day care for newborns to six-year-olds, state government funded three-year-old and four-year-old kindergarten programs, a Maternal and Child Health Service and playgroups.

🔑 Advocating for fair pay for all: According to the ASU, Knox Council is one of 27 councils who have not yet applied for the payment, despite the ASU requesting them to do so in writing and during meetings with chief executive Bruce Dobson.

🗣️ ASU Victoria/Tasmania branch secretary Tash Wark said the temporary payment “goes some way to acknowledging the low-paid work that a mostly female workforce performs”.

"It's essentially free money for employers,” she told the Eastern Melburnian.

"We are out there tonight in support of that workforce, wanting to demonstrate some solidarity for people working in that generally pretty low-paid area.

“If councils do not apply for the funding by the end of this month, hundreds of educators will lose thousands of dollars.