Government changes tune on further increase

The interim 2.27% wage rise for members employed under the Public Sector Salaries and related awards is currently being paid.

It is backdated to the first full pay period on or after 1 July 2013.

But despite earlier written assurances, the O’Farrell Government has changed its tune in relation to a further pay increase for members.

It has decided that the 2.27% rise is enough despite it being less than their own wages policy.

Following the Government’s failure to secure Parliament’s approval for a Regulation to reduce the pay of public sector workers by the increase in super, the PSA appeared before Industrial Relations Commission President, Justice Boland on 6 September and requested the Commission award the full 2.5% increase.

It was then that the Government suddenly argued that the Commission should pay no more than the 2.27% increase on the basis that a) there is no provision in the budget for the full 2.5%, and b) altering the budget will upset the state’s Triple A credit rating.

This position was strongly opposed and criticised by the unions because of the lateness of the application and the fact these arguments had not been raised in the five months since our initial application for 2.5%.

Further, this sudden argument from the Government ‘flew in the face’ of its own policies regarding the availability of 2.5%.

In deciding to allow the Government to run its arguments, Justice Boland acknowledged that the Commission was required to take economic circumstances into account.

However, Justice Boland also indicated that he believed the onus should fall on the Government to make a case to support their argument that an amount lower than 2.5% was reasonable.

The full judgement can be found here.

The Government’s argument against a further increase will now be heard by the Commission on 13 and 14 November.

The PSA and Unions NSW will be using expert economic evidence to support our application that the Commission grant the full 2.5% increase.

Under Rule 10, PSA fees are adjusted in line with the public service pay rises won by the union on behalf of members.

Fee increases are implemented after the wage increase has been paid.

This year the PSA fee increase of 2.27 percent will occur in October.

A table showing the new fees will be included in the next Red Tape.

It can also be viewed at the bottom of this page of the PSA website.

PSA fees are tax deductible.