According to Siptu, set to release its pre-budget report on Tuesday, the childcare sector should receive a secure investment exceeding €100 million. This would enable higher remuneration to draw prospective staff members and improve existing pay structures. The union, representing nearly 6,000 childcare workers, urges the government to address continuing staff shortages in key regions by exploring ways to offer services directly.
Siptu underscores the rampant employee turnover, estimated at around one quarter, in the sector. This reflects better wages accessible in other roles, such as special needs assistant. The current minimum hourly pay for childcare educators stands at €13.65, almost a euro above the minimum wage. Graduate managers receive a basic pay of €18.11, however, several employers claim to offer well above these mat rates.
The union’s survey taken earlier this year demonstrates service closures due to lack of staff, impacting children as well as other employees. It also indicates that nearly all the sector’s workforce faces financial strain.
Despite governmental allocation of approximately €1.1 billion annum for childcare services, Siptu’s contention stands that the current investment amounts to merely half of the European Union average. To retain the current workforce, the union pushes for further rises in the investment, with an additional €111 million to enhance staff conditions.
Siptu further pushes the government to resolve the inconsistencies in parent fees levied by service providers since the advent of core funding.
Childcare providers have warned that the costs of childcare could escalate by as much as 30-40% unless the government increases its primary funding. This has become an issue as those services already receiving government support have been compelled to retain their existing fees — some of which were determined pre-pandemic. Whereas, newly launched providers have the liberty to set their charges.
Established operators have raised complaints about losing staff to these new services, which can afford to offer higher salaries while simultaneously reinvesting their earnings into the facilitation of their establishments.
The union is advocating for the government to consider involvement in the sector as a service provider. According to the union, a government-backed entity could precisely target areas suffering from either oversupply or lack of services. They can also assume control of services that are set to close.
The ‘Danish model’, whereby the government covers 70% of childcare costs, has been suggested in a budget submission.
The Department of Children has acknowledged shortages in the sector, with some spots reported to be severely limited due to various reasons. Some parents report waiting for up to two years to get their children into local creches.