The state sector is showing more restraint than the private sector over wage bills, State Services Minister Tony Ryall says.The minister said that was the message the Government wanted to send so he was pleased with figures showing the quarterly public se
The state sector is showing more restraint than the private sector over wage bills, State Services Minister Tony Ryall says.
The minister said that was the message the Government wanted to send so he was pleased with figures showing the quarterly public service salary movement was lower than the private sector movement for five consecutive quarters.
"In general, it is pleasing to see that the Government's expectations of restraint are being heard. The recent agreement with nearly 75 percent of the health workforce is a good example.
"Police have also just settled with the Police Association. The two year deal includes a one-off payment of $1000 per person at 1 July 2010 and a 1.3 percent wage increase from 1 July 2011."
Mr Ryall said the Labour Cost Index figures also showed areas where wage and salary changes were out of step with the rest of the country, with local government increases three times more than the public service movement.
"While public service salaries rose 0.1 percent for the quarter and 0.7 percent for the year, local government salaries went up 0.3 percent for the quarter and 2.1 percent for the year.
"However, in the wider public sector, some groups' claims are out of line, such as secondary teachers demanding a 4 percent increase for each of the next 3 years."
Mr Ryall said overseas government departments had faced cuts and significant pay reductions.
Also today Mr Ryall released updated expectations for pay and employment conditions in the state sector.
"While there are no fundamental changes to these updated expectations, there is a stronger emphasis on reinforcing the critical link between decisions about pay and employment conditions, productivity and fiscal restraint and improved service delivery."
Key points were:
- Any changes to pay must contribute to the overall improvement of frontline services, be financially sustainable for the next 3-5 years, and be linked to improved productivity.
- State sector agencies are required to consult with the State Services Commission prior to and during wage bargaining and before committing to any remuneration increases.
- The expectations apply to the public service, crown entities and non-public service departments and include remuneration reviews and collective bargaining.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
