“He needs to be transparent about where this money is coming from,what assumptions[he] took into account in arriving at that figure,and how the fund is to be administered.”
Emerging from the Coalition’s wage cap,the state budget must now contend with unknown public sector pay deals,especially as workers seek redress for years of below-inflation wage growth and unions play hardball.
Earlier this month the governmentstruck a one-year deal with the NSW Teachers’ Federation,in line with a broader public sector wage deal,that will mean salaries increase by at least 4 per cent. Education Minister Prue Carsaid she had found $1.4 billion in savings over the next four years to pay for the deal and future wage rises.
The deal with the state’s nurses,also for a 4.5 per cent pay bump including superannuation,was likewise a one-year arrangement,with the government and unions returning to the negotiating table next year.
In June,before the final deals were agreed,the government said it expected its offer of a 4.5 per cent wage increase for the public sector would cost $618 million in 2023-24.
NSW Nurses and Midwives’ Association delegates Nichole Flegg,Nick Howson,Rachal Hughes,Skye Romer and Thom Hoffman at their annual conference last month.Credit:James Brickwood
Shadow treasurer Damien Tudehope accused Labor of misleading voters when it said public sector wage rises would be paid for by productivity gains.
“The Treasurer’s claim that wage rises would be funded by redirecting and reallocating resources is code for cuts that will hit NSW households and businesses,” Tudehope said.
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“He needs to be transparent about where this money is coming from,what assumptions[he] took into account in arriving at that figure,and how the fund is to be administered.”
Tudehope left the door open to bringing back the cap,which was introduced by then-Liberal premier Barry O’Farrell in 2011.
“The wages cap was an effective tool for delivering real wage rises as well as being able to deliver record infrastructure during the Coalition period of government,” he said. “We cannot know what the state of the budget will be in three years’ time and would make that assessment at a time when the financial position of the state is clear.”
The government is concerned key workers are leaving NSW because of the high costs of housing. Industrial Relations Minister Sophie Cotsis said the reserved funds would help address what she called the “recruitment and retention crisis in NSW” among frontline staff.
Separately,the government announced on Saturday a $224 million package for social and affordable housing,including initial land and site works,maintenance and a trial of using “modular” or pre-fab homes for public housing.
Housing Minister Rose Jackson said it was a step in the right direction but acknowledged there was “more work to do”.