Govt announces change to public sector pay cap

The New South Wales Government announced on 3 May that it will use part of the annual pay increases offered to public sector workers to meet its own superannuation obligations.

From 1 July, compulsory employer superannuation contributions will rise from 9 per cent to 9.25 per cent and will rise incrementally each year until they reach 12 per cent in 2019.

With still no response to your Award claim to put patient safety first by extending and improving the ratios system, the Government has been planning to avoid the widely applauded federal superannuation increases that are designed to build long term retirement security for all Australians.

Whilst there is still no written detail and no pay offer to NSWNMA, media reports reveal that the Government’s 2.5% per year pay increase cap will effectively be reduced to a 2.25% ‘take-home’ component – which is lower than the current inflation rate of 2.5%. The remaining 0.25% would go into your superannuation account.

The Government has given itself the legal power to make changes ‘at the stroke of a pen’ by changing the industrial laws in 2011. Along with reductions in workers compensation protections, the removal of genuine wages negotiation rights and removal of the power of the Industrial Relations Commission to arbitrate on pay and conditions, this latest announcement is more proof that the Government does not respect the work of public sector employees.

The Association is completely opposed to this attempt to avoid federal legislation and drive down the wages of NSW public sector employees. The next ‘talks’ are scheduled with the Ministry of Health this Wednesday 15 May.

Last chance to do NSWNMA survey: type this address into your browser to participate in the campaign survey: http://goo.gl/ETrtX

The survey closes at midnight Tuesday 14 May. Your answers will help shape the Association’s strategic decisions as the countdown to the Award expiry on 30 June continues.

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