Federal laws may sink charities
Post on: 2011-09-05 By: admin
Queensland charities are warning they may go broke or be forced to reduce services because of back pay to staff worth hundreds of thousands of dollars.
Federal regulations require 316 charities to pay staff 18 months of salary rises ranging from 18 to 38 per cent.
The organisations - including charities involved in activities ranging from domestic violence shelters to housing support groups across the state - are expected to start the retrospective payments from October 1.
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Queensland Community Services Employers Association president Kaye Deeley says this may see the end for some of the charities.
"There are services in Queensland that are already starting to cut their hours of service delivery and no doubt many more will," Ms Deeley said today.
"People with disabilities or people who depend on community services will have reduced access or may not have any access at all."
Ms Deeley, who is also the CEO of a disability service called Link In, said some services weren't receiving any government funds to help with the back pay.
"The industry employers are not saying staff shouldn't get a pay rise, but every service needs some form of government funding," she said.
"If government is going to enforce a back pay to the extent it has, then somebody (state or federal governments) has to come to the party with the money."
The Queensland government is saying it has already invested a significant amount of funds.
Community Services Minister Karen Struthers says Queensland contributed $414 million over four years and an additional $125 million recurrent funds to supplement organisations facing increased salary charges because of a state government pay equity decision in 2009.
It was up to the federal government to cover the costs incurred by its own laws, Ms Struthers said.
"It's great news for the employees - they are going to get a much deserved pay rise.
"The reality is these organisations are covered under the federal Fair Work Act.
"That's why our premier has written to the prime minister to say we've covered the costs of those that came under the state-based laws, please help with those covered under your laws."
Liberal National Party (LNP) community services spokeswoman Fiona Simpson said the federal system was a damaging retrospective law.
"It will affect people trying to prevent homelessness, domestic violence shelters and disability service providers across the state from remote Aboriginal communities to big city providers," Ms Simpson said.
"Why the state government nominated these charities to be included in this federal regulation is a big question."
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Article original from: http://www.brisbanetimes.com.au/queensland/federal-laws-may-sink-charities-20110904-1js31.html
