Workers at a Canberra disability support organisation have been told they could face a pay cut of up to 5.7 per cent in a move slammed as "outrageous" by a union, which is fighting the proposal.
Hartley Lifecare have said there was no choice but to make the changes, saying the NDIS funding was not sufficiently covering the costs of services.
The organisation's chief executive Eric Thauvette said if Hartley's current financial situation does not change by next month the organisation will have to shut by the end of 2024.
Hartley Lifecare is a not-for-profit organisation providing supported accommodation for people with disability, their families and carers.
Staff have been told some salaries will be cut by 5.7 per cent and positions will be reclassified. Workers will also lose some allowances.
"We are acutely aware of the seriousness of these changes and do not underestimate the effects these will have on you and your families," Mr Thauvette said in an email to staff.
"Consequently, these decisions have not been made hastily or without careful consideration and analysis."
The Australian Services Union has lodged a dispute with the Fair Work Commission over the changes. The union says that a majority of its workers will be affected by the changes.
ASU NSW and ACT secretary Angus McFarland said it was outrageous the changes were being implemented over the Christmas period.
"Hartley Lifecare is the grinch ruining Christmas. They are robbing jobs and wages from hundreds of workers who work hard every day to support NDIS participants in the Canberra region," Mr McFarland said.
"During a cost-of-living crisis and the busiest time of year, Hartley Lifecare is rushing through these outrageous plans causing enormous stress for workers, their families, and for the NDIS participants they support."
Mr McFarland said the reduction in pay could result in many leaving the industry.
"A reduction in senior workers on the floor and the potential for a mass exodus of support workers poses significant risk to continuity of care of people with disability," he said.
"The disability royal commission and NDIS review have both acknowledged that more needs to be done to attract and retain disability support workers to ensure a stable, well-supported workforce - this certainly can't be achieved by the actions of providers like Hartley Lifecare."
But Mr Thauvette said the current NDIS model did not provide sufficient funding to the organisation. He said this affected salaries and wages, administration costs, compensation insurance and no funding for mandatory compliance obligations.
"In summary, the NDIS cost model is flawed, resulting in clients not receiving enough funding to cover the real costs associated with engaging a provider such as Hartley which aims to provide exemplary and safe supported independent living and other services," he said.
"Consequently, this has resulted in a third-year deficit for Hartley and is a significant and urgent threat to Hartley's viability into the future."
