Each year the Victorian Government increases funding to community sector organisations to account for increases in wages and other employment costs as well as the additional costs of meeting the needs of clients.
The annual funding increase, or indexation, rarely keeps up with the rising costs to community sector organisations and this year, the gap is bigger than ever.
The Andrews State Government budgeted for a miserly 2.44% increase when wages for most community sector workers will increase by at least 4.2%, and organisations are feeling the effects of higher service delivery costs.
The ASU has urgently raised this inadequate indexation with the government.
Importantly, we need a real process where worker representatives and employers can sit down with the government and set community sector funding so essential staff costs, including pay rises, are covered EVERY YEAR by state government indexation.