ELECTION PROMISES BULLETIN #2 – The Wages Cap, the Industrial Relations Commission and gender pay equity
In October last year, the PSA wrote to all political parties to seek their position on issues important to our members.
One of the questions asked was, “What is your Party’s policy in respect to public sector salaries and conditions and the role of the NSW Industrial Relations Commission and the Fair Work Commission?”
As you know, the NSW Coalition Government has imposed a cap on our wage increases for the last eight years.
This has meant that your union has been unable to argue for a pay rise beyond 2.5% at the Industrial Relations Commission.
In very welcome news, Labor has promised to scrap the 2.5% wages cap and restore the IRC’s ability to enforce wage increases that are fair and keep up with the cost of living in NSW. This will include the right to run work value cases in the IRC for increases to classifications above and beyond the state average
Treasurer Dominic Perrottet has called Labor’s proposal “reckless” and said that the Wages Cap was “about fairness and getting the balance right and I believe we have done that.” From 2021, the Liberals and Nationals will reduce the annual wage increase to 2% in order to fund the compulsory superannuation increases.
What have the Parties promised – WAGES*
| Party | Promise |
| Labor | A Daley Labor Government would scrap the 2.5% Wages Cap and reintroduce the independent umpire (the Industrial Relations Commission) to the bargaining system. This would give back conciliation and arbitration powers to both our union and the IRC and would allow for fair fights for fair wage increases. |
| Liberals and Nationals | The 2.5% Wages Cap will remain under a re-elected Liberal National Government and the powers of our union and the IRC will continue to be restricted.
From 2021, the Liberals and Nationals will reduce the annual wage increase to 2% in order to fund the compulsory superannuation increases. |
| The Greens | The Greens do not support the 2.5% Wages Cap. The Party has told the PSA that some executive salaries should be “cut back to a reasonable level” and the savings “redistributed to lower-paid workers” as part of the solution.
The Greens support more workers being covered by a “far fairer NSW IR system” and believe that that the IRC should have its autonomy restored. |
| Shooters, Fishers and Farmers | The Shooters, Fishers and Farmers Party told the PSA that it is “unfortunate that wages have stagnated under this government for the last eight years.”
SFF told the PSA that it would continue to defend the role of the NSW IRC and, where appropriate, the Fair Work Commission. |
Another question the PSA put to the parties was, “What is your Party’s position on establishing gender equity policies and equal pay principles for the NSW Public sector?”
The PSA is in the process of running a gender equity pay case at the IRC for School Admin and Support Staff. This is one of the biggest cases the PSA has ever run and it aims to highlight the historical underpayment of a female-dominated industry.
The Liberals and Nationals have claimed that their policies support equal remuneration for men and women but no reduction in the gender pay gap has occurred in the last eight years.
What have the Parties promised – GENDER EQUITY*
| Party | Promise |
| Labor | A Daley Labor Government will be committed to delivering outcomes based on strong industrial principles to dismantle all forms of discrimination based on gender.
Scrapping the Wages Cap and reintroducing conciliation and arbitration powers to the IRC will greatly assist in this goal. |
| Liberals and Nationals | As part of its Wages Policy the Coalition Government has a policy of ‘Equal remuneration for men and women doing work of equal or comparable value’.
The Government is strongly opposing the Public Service Association’s application for pay equity in School Admin and Support Staff case. |
| The Greens | The Greens support clear legislated requirements for gender equality and equal pay. |
| Shooters, Fishers and Farmers | SFF told the PSA that their Party believes in employment and promotion based on merit only. SFF do not support quotas based on gender or race. |
*Only parties who responded to the PSA’s letter sent in October 2018 have been included in these tables.
The PSA took the legislation enshrining the Wages Cap to the High Court of Australia, and the only way to change the Wage’s Cap is to change the legislation.
If you want to change the legislation, you will need to change the Government.
SAVE THE STATE. CHANGE THE GOVERNMENT.
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