NSW public servants will be forced to forgo a 2.5 per cent pay rise for 12 months after the Berejiklian government unveiled its plan to freeze wages for more than 400,000 employees.
In a move that places the government on a warpath with the unions, Labor and the crossbench, Premier Gladys Berejikliann announced the policy on Wednesday as one which would save taxpayers $3 billion.
"Today's decision isn't taken lightly," Ms Berejiklian said.
"Whilst we are recovering from the health consequences of the pandemic we have yet to come to terms with the economic shock. Job security is essential on our path to recovery."
The Premier said the pay freeze was about "keeping all of our employees in jobs", but also supporting the 90 per cent of people in the state who do not work for the government. She said the policy would include a guarantee of no forced redundancies for all workers who are not senior executives.
The measure is expected to be fiercely resisted by powerful public sector unions, including the nurses' and teachers' unions which have already foreshadowed their preparedness to take industrial action.
Premier Gladys Berejiklian announced a one-year freeze on public service pay rises on Wednesday.Credit: Nick Moir
The government will also face a significant hurdle in convincing the opposition and the crossbench to support the freeze, after Labor and the Greens confirmed this week they would attempt to block the measure by any means possible.
NSW Treasurer Dominic Perrottet said the wage freeze for public sector workers such as doctors, teachers and nurses will ensure more jobs can be created in the state.
The policy would save taxpayers $3 billion, Mr Perrottet said.
Ms Berejiklian has said the money saved by freezing wages would be spent "on health and jobs".
"They are our priorities, keeping the community safe and keeping people in a job or helping people get a job," the Premier said.
Ms Berejiklian said the reason the state has been able to address the pandemic so far was due to the billions of dollars put into the health system in response.
"I'm proud of the fact we started testing and contact tracing pretty much from Australia Day," she said.
Treasurer Dominic Perrottet asked the crossbench to support the wage freeze, telling the Labor Party: "Today you aren't just elected to represent the unions, you're elected to represent the people of NSW."
According to ABS unemployment data, 221,000 NSW residents lost their job last month.
"We don’t come to this decision lightly," Mr Perrottet said. "This is not about the budget. This is not about savings. This is about creating jobs right across the state."
Mr Perrottet said the government would seek to implement the pay freeze via regulation, and it would apply to new pay agreements as they arise over the coming months.
He said the government would not attempt to unwind existing agreements.
with Mary Ward
Lisa Visentin is a state political reporter at The Sydney Morning Herald.
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2020-05-27 02:23:40Z
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