The O’Farrell Government have arrogantly changed the law to overturn the decision of the Industrial Relations Commission not to cut the 2.5% public sector wage cap by the increase in the superannuation guarantee contribution.

This appalling shift of the goal posts by the Government was in response to a unanimous decision by the Full Bench of the NSW Industrial Relations Commission (IRC) on 25 June.

The Full Bench ruled that the PSA’s applications for a 2.5% increase to the Public Sector Salaries Award and related awards be paid in full and not discounted by the 0.25% rise in the superannuation guarantee contribution.

In response, the Government have announced it will override the Commission’s decision with an amended regulation to force the IRC to discount the pay increase by the rise in superannuation.

Further, the Government indicated it will also appeal against the decision of the Commission in the event that the Upper House disallows this new regulation.

The move came on Friday 28 June which was not only the last working day before the increase in the superannuation guarantee kicked in on Monday 1 July but after Parliament had formally risen for the winter recess which meant no opposition could be mounted until the next sitting.

As far as the PSA is concerned, the Commission’s ruling vindicated our position that the Government’s 2.5% cap applies to wages and wages alone.

The PSA initiated the fight against the Government attack and was then joined by Unions NSW and other public sector unions.

While the PSA maintains that the Government’s 2.5% public sector wage cap leads to a reduction in pay in real terms, we were not about to sit by and have that figure discounted further.

That remains our position.

But it is now clear that the Government is incapable of sticking to its own wage cap and can and will change the law to suit its needs and circumstance.

The PSA and other public sector unions are planning a collective strategy in response to this latest attack.

In the meantime, the PSA is back before the Industrial Relations Commission on Friday 5 July for a ruling on the level of increase that members will now receive.