Keen interest in salaries and inflation movements

By

Brenda Seymour

Federation is keeping a watchful eye on pay settlements in other professions.

The NSW Government's pay increases policy is for 2.5 per cent per annum for state government employees with no back pay and no payment to employees until the relevant industrial instrument settles all outstanding issues.

This is uncomfortably set against the projected inflation rate of 4.29 per cent for the next 12 months and the fact that most government departments and agencies have delayed advising unions and workers of the employer savings that they have put to the Government.

The thrust of offsets the Government seeks are in the key areas of sick leave (where the government hopes to reduce sick leave by one day for per annum for each state government worker), overtime (where less overtime is sought) and restructuring. Federation has already had to fight off the intended replacement of educator/teacher positions with less well paid public service positions in EPAC, AMES and for staff support officers. The NSW Government's policy is so severe that Unions NSW has complained to the Government about it.

In a letter to the Government, Unions NSW said:

"This provision is clearly unfair and unjust. The NSW Nurses' Association served a claim on the Department of Health in mid February in order to start negotiation for a new award due to commence on July 1, 2008. A response was received June 5, 2008, some four months later, thereby cruelling any chance of concluding negotiations before the expiry of the award at the end of the month (June). No public sector worker should be penalised by not having any increases in back-pay paid which are caused by delays in the ranks of the public sector executive or for any other reasons."

Federation has opened its claim with the Government by providing the claim to the Ministers of Education and Training and Corrective Services. The union has sought to know what these departments have put to the Government as 'savings offsets'.

The replies have only been cursory.

Treasurer Michael Costa, in the State Budget, reaffirmed the 2.5 per cent per annum as the Government's pay offer. Minister Costa boasted of settlements that have been done in NSW for 2.5 per cent per annum, however, on closer assessment, not one has been done with any significant public sector union.

After a spirited campaign, the fire fighters took their case to the Industrial Relations Commission and 2.5 per cent was awarded for six months. The fire fighters are back in the Commission on August 23, seeking to improve the percentage which initially was awarded.

Other NSW public sector unions

Delta Electricity workers have settled for 4.75 per cent for 12 months with no details regarding the offsets available at this time.

NSW Maritime workers settled a particularly difficult dispute which had raged for 14 months. This was settled on the eve of the Formula One Boat Race where the running of the boat race the next day was in jeopardy. This prompted the NSW Government to settle with 14 months back pay (against their own policy) and for 3.5 per cent per annum pay increases in a three year deal.

Some of the maritime worker offsets were:

• reduction in expenditure on "back of house" uniforms
• an attempt to reduce the average number of sick days from 3.2 to two days per employee per year
• senior executives not necessarily to be back filled by utilising higher duties when they are absent.

Sydney Ports workers currently have an offer of three per cent per annum.

NSW Health nurses have been offered 3.9 per cent for two years.

NSW Health doctors and health services workers have been offered 3.9 per cent for one year.

The unions must agree by July 1, 2008 as the Government has said there will be no back pay. It is expected that there will be more funds from the Federal Government for health in 2009.

The nurses are still negotiating the offsets, which include:

• five, instead of the current eight, unsupported separate sick leave absences in a single year will trigger management action. Note: the actual sick leave entitlement and accrual is not changed under this proposal
• higher grade duties only paid after five days acting in the position
• removal of access to the Government and Related Employees Appeals Tribunal (GREAT)
• changes to the Trainee Enrolled Nurse training scheme - introduce traineeships and an unpaid pre-employment training model.

Federation will monitor its salaries, superannuation and status of the profession claim to ensure that it remains sound in the light of inflation projections and other pay settlements. Federation will provide a vodcast on its superannuation claim and its death and invalidity case which is before the Industrial Relations Commission.

Benchmark set

The Tribunal sets the pay for federal politicians and holders of public offices including the Fair Pay Commission, the body set up under the former Howard Government.

Over the past two years the head of the Fair Pay Commission has enjoyed a pay rise of 53 per cent while ACTU research shows that the pay of more than a million workers on awards has gone backwards under WorkChoices by up to $2000 a year in real terms.

For the average skilled worker that is reliant on minimum wages, an increase of 4.3 per cent would amount to around $26.50 a week. This is actually higher than the ACTU pay claim of $26 a week.

More and more families are having their income eaten away in petrol, groceries and housing costs. Families are really feeling the pinch and low paid workers are desperate for a decent pay rise. Workers are struggling to pay the bills and put petrol in the tank to get to work. Low paid workers need a $26 a week pay rise.

Brenda Seymour is the Assistant General Secretary (Research and Industrial).

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June 2008 contents