NSW public sector wage increases to be slashed
The wages of more than 400,000 NSW public sector workers should increase by just 0.3 per cent over the next 12 months, the NSW Industrial Relations Commission has determined.
The decision comes after NSW Premier Gladys Berejiklian in May moved to freeze wages of public sector workers, including nurses and teachers, for one year during the coronavirus downturn, which she said would save the state about $3 billion.
NSW Premier Gladys Berejiklian and Treasurer Dominic Perrottet address the media.Credit:Nick Moir
Unions NSW secretary Mark Morey described the decision as "economic vandalism" and warned of potential industrial action.
"The Premier and Treasurer [Dominic Perrottet] may as well walk around the state throwing 20¢ pieces at public sector workers," Mr Morey said on Thursday.
"We're going to review the decision today ... think about our legal options and our industrial options."
Opposition Leader Jodi McKay said hundreds of thousands of NSW workers had been ripped off, and questioned the government's assertion that the $3 billion in savings would create more jobs through investment.
"This is a kick in the guts to 400,000 people across NSW," Ms McKay said.
The government's plan was blocked by the state’s upper house in June, and it was forced to turn to the industrial umpire to resolve the matter.
In handing down the decision on Thursday, IRC Chief Commissioner Nichola Constant acknowledged that some might regard the 0.3 per cent increase as "notional at best".
"This is not a determination that the full bench has made easily and without hesitation," she said.
In making the initial announcement, Ms Berejiklian warned that she could not guarantee potential job cuts to the public sector if wages were not frozen for 12 months.
Speaking on Thursday morning ahead of the decision, Ms Berejiklian maintained that was a possibility.
"That remains the case I'm afraid, because what we wanted to do was make sure every single public servant knew that they had their job moving forward," she said.
"If we have to find extra billions of dollars over the next few years, it makes that very difficult. I hope it doesn't come to that, but we've been very upfront with the community."
The wages of public sector workers had previously risen by 2.5 per cent a year.
Tom Rabe is Transport Reporter with The Sydney Morning Herald.