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Issue #1592      May 8, 2013

PSA will fight pay cut

The NSW Public Service Association (PSA) plans to vigorously fight the state government’s proposals to cut pay for public sector workers to accommodate an increase in the superannuation guarantee levy legislated by the federal government.

This announcement was made without prior consultation with the PSA.

The government’s public sector wage policy is capped at 2.5% and it is proposed the super increase of 0.25% be treated as an employee-related cost and as such will reduce the salary increase to 2.25%, a wage cut in real terms.

The PSA fought hard against the imposition of the 2.5% wages policy in the first instance including a challenge to the High Court of Australia and will not stand by and allow the government to change its own rules on an economic whim.

The PSA said it is firmly of the view that the payment of superannuation is a government responsibility, as the employer, which should under no circumstances be turned into what will only be an additional burden on workers.

The PSA has sought legal advice on this issue.

The union’s wage applications for a 2.5% variation of a number of awards will be heard by the Industrial Relations Commission on May 22.

At that time the union will strenuously argue for the payment of the 2.5% pay rise in full. A special meeting of the PSA’s executive on May 3 resolved that:

“The PSA will continue to pursue its 2.5% salaries application on May 22. The increase in superannuation is the employer’s responsibility. The PSA will not agree to discounting the 2.5% by the 0.25% increase in superannuation under the Superannuation Guarantee Act.”

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