Court ruling on carers' pay could force law change

Health Minister Tony Ryall. Photo / Clare Fraser

Health Minister Tony Ryall yesterday said the court decision about disability carers could flow on to teachers and Child Youth and Family carers - presenting the taxpayer with more bills of $84 million and $24 million over the next three years.

The Government is yet to decide if it will challenge the Court of Appeal decision released on Tuesday. That decision upheld an Employment Court decision against IHC provider Idea Services, and found carers should be paid the minimum wage when on sleepovers rather than the $35 shift allowance - adding about $90 a worker to the nightly cost.

Mr Ryall would not speculate, but asked if change was likely, he said the court made it clear the legislation was "antiquated and based on a 1945 lifestyle of people working nine to five".

He said the Government's "top priority" was to reassure disabled people and their families that a quality service would continue. As well as the $500 million bill for health, there was a potential impact on Child Youth and Family and education - including paying teachers to sleep while on camp or for school boarding hostels.

John Ryall, national secretary of the Service and Food Workers' Union, said the Government could face difficulties if it tried to change the law because it had signed international conventions. He denied the ruling would have a wider implications, saying the court made it clear it affected only a small sector.

SLEEPOVER CASE
The Court of Appeal decision:

Workers who sleep over in care residences for the disabled should be paid the minimum wage rather than a flat allowance of about $35 because they cannot leave and are on call.

The potential costs: Five years backpay plus ongoing annual costs.

Health / Disability sector: $350 million backpay plus $50 million a year in wages.

Schools: $57 million backpay plus $9 million a year for wages.

Child Youth and Family homes: $15 million in backpay and $3 million in wages each year. The Government is considering law changes after calculating a court decision on "sleepover" workers could cost at least $500 million.