By Jed Lanyon
Yarra Ranges councillors have opted to wait for the outcome of the Royal Commission into Aged Care before making a decision on outsourcing some of its aged care and disability services to external providers.
Councillors debated the issue at length at the 8 December council meeting and heard from a council staff member potentially impacted by a transition to a market-based provider.
Councillors ultimately decided to wait until the Royal Commission handed down its findings in order to make a decision on changes to services under the Commonwealth Home Support Program (CHSP) and the State Government’s ‘Home & Community Care Program for Younger People’ (HACCPYP).
The results of the Royal Commission are expected by late February.
The proposal put to council stated it would no longer be viable to continue to deliver entry level services such as domestic assistance, property maintenance, personal and respite care as the Federal Government moves towards a market based and consumer driven system under its aged care roadmap.
Gayl Lyons, who has worked for the shire for 35 years, feared she would see a pay cut if council opted to transition some of its aged care services to another provider.
“We object to council’s proposal to outsource community care services. The current service is a crucial community asset that should not be handed over to the private sector,” she said.
Ms Lyons urged council to offer redundancies to staff members who do not wish to transition to a new employer.
Council employees were assured that their entitlements, wages and hours would remain the same as part of any tender agreement in the outsourcing of the services, but that it would only be subject to the current enterprise bargaining agreement of the new provider.
The Australian Services Union (ASU), who represent the impacted council staff, had urged councillors to reject the outsourcing of in-home aged services calling it a risk to vulnerable residents and a threat to carers’ livelihoods.
ASU representative Will Wyatt estimated the difference in wages for council staff compared to those of private providers to be $8 less per hour.
“What we have seen is large numbers of employees who have transitioned to these providers losing out significantly until it’s dried up so much that they’re basically forced to leave. There is no dignity in that,” he said.
“They won’t be offered more work, they’ll maintain their hours for a while, they’ll maintain their conditions for a while. Eventually though, the inheriting organisation will cut them loose.”
ASU branch secretary Lisa Darmanin said, “The Australian Services Union thanks each of the councillors who considered the interests of vulnerable residents and dedicated aged and disability carers by rejecting privatisation.”
“Tt’s great news for service users and dedicated aged and disability carers that management’s push to privatise was rejected.
“The outsourcing of services has created a crisis on the frontline of local government, and we will push back against each attempt to outsource any more jobs or reduce services.”
Councillors were split on the original proposal with Jim Child and Richard Higgins making it clear they wished to make a decision sooner rather than later.
“This motion is telling us we need to be prepared when it (the Royal Commission) comes down to keep moving and without losing any more traction,” Cr Higgins said.
“It is an extremely difficult position to be in, but we need to take the front foot and be responsible and try and do the right thing and work through this so that everybody can get the best outcome.
“I don’t believe that waiting two months is going to change anything because it doesn’t matter who we go with; they’re going to be governed by all those changes and recommendations that the Royal Commission come down with, end of story.”
Councillors Tim Heenan, Catherine Burnett-Wake and Len Cox spoke passionately against the motion.
“This decision that we make tonight has got nothing to do with the care of our older residents and for the care of our longstanding employees in the Yarra Ranges,” Cr Heenan said.
“It’s just about the economics and finances going forward, and I cannot, and will not support this decision tonight based on that.
“We have been given a lot of information of what’s going to happen and I feel that the information that we’ve been given is almost paramount to a fear campaign that if we don’t do this we’re going to be caught with such an adverse effect against private companies that we won’t be able to compete with, because of course, our costs will be too high.
“Other aspects of what’s been put to us are more about understanding that as we go forward there will be protection for the employees. There will be in the short term, but that will disappear. The fact that we state in the actual motion that we acknowledge and recognise their significant contributions, well if we recognise the significant contributions we would be putting forward an opportunity for redundancies for those workers who have worked so hard for so long.”
Mayor Fiona McAllister supported waiting.
“It’s a decision we have to make with head and heart and I think that’s what I see playing out before us tonight,” she said.
“It may surprise you to say although I think there has been a huge body of work come before us tonight, that I am also going to support a pause and I do it with very mixed emotions and thinking through everything I have heard and read.
“I feel very well informed but this is a decision that I would not like us to be making split almost in half and if it’s a matter of a few months and the finding of the commission that may produce enough light on the issue and affirm probably what we already know in the decision we are making tonight, then it’s probably worth waiting.
“It will not be an easy decision to make in three months in the same way it’s not an easy decision before us tonight, but I do feel that it is probably the right thing for us to do.”
