NSW budget to cut public sector wage increases

NSW public servants will have their wage increases cut in the November state 17 budget.

NSW Treasurer Dominic Perrottet has confirmed public sector wage increases will be cut from 2.5 per cent to 1.5 per cent in the state budget, which he says is in line with inflation forecasts.

It comes after the government sought to freeze the annual increase at 2.5 per cent earlier this year.

“We think that’s fair and reasonable,” the Treasurer told reporters on Tuesday.

NSW Labor Leader Jodi McKay said it was a slap in the face for 400,000 workers and an act of economic vandalism.

Shadow Treasurer Walt Secord said Mr Perrottet wanted government workers to foot the bill for  $13.5 billion in budget blow-outs and his $4 billion iCare bail-out.

Unions have condemned the decision.

“It’s an absolute betrayal of the essential workers who’ve kept NSW going during this pandemic and during this crisis,” NSW Secretary of the Australian Services Union Natalie Lang told the ABC.

The state government announced its intention to stop the annual 2.5 per cent wage increase for public servants in May.

The matter ended up before the industrial umpire after the government failed to get the freeze past the Upper House.

NSW Industrial Relations Commission upheld the wage freeze on October 1 but granted a ‘notional’ 0.3 per cent pay rise.

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2 thoughts on “NSW budget to cut public sector wage increases

  1. There should be a wage freeze and personally some position cuts to reign in the debt.
    I feel for the private sector who have all the additional expenses of work vehicles, equipment, leases and little to no income, then their mortgages which they can’t pay and on top of that the kids education …. Their staff don’t demand a pay rise…they are lucky to have a job even if it is on 1/2 pay due to low demand….whichg means half super….they will never catchup after this and all the mean time we are on full conditions seeking pay rises….

  2. Even if government workers need a wage cut, doing it now was a horrible political move

    They literally were on the very front lines in a pandemic, from school teachers to transport workers, nurses police

    Not all of them vote left with, and probably not their families who might work in the private sector who they support, or who were just worried about them getting sick

    Lucky this pandemic did not end up being that bad, but I doubt many will be as gung ho to put their health on the line when the next one hits, or vote for the liberal party again…

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