A new wage policy has been announced for the Australian Public Service designed to ensure public sector wage rises do not exceed rises in the private sector.
Assistant Minister to the Prime Minister and Cabinet, Ben Morton said the new Public Sector Workplace Relations Policy 2020 would allow Commonwealth public sector wage rises to follow the private sector wage growth when it eventually exceeds two per cent.
“This will ensure that wage increases for Commonwealth public sector employees will be in step with their fellow Australians,” Mr Morton said.
“By removing the existing two per cent cap, the wages of Australian Government employees can grow as private sector wages grow – even when private sector wages growth exceeds two per cent, but importantly it won’t be able to exceed it, even when it dips below two per cent.”
He said the existing two per cent wages cap would be removed with future wage adjustments for the APS.
Mr Morton said the changes would be made as current arrangements by Departments and Agencies finished and needed to be renegotiated.
He said existing arrangements that had agreed with employees in good faith would not be impacted and would be allowed to run their course.
The Community and Public Sector Union (CPSU) said the Policy showed disregard for the growing problem of wage stagnation in Australia and the need to kickstart the economy.
“Both economist Saul Eslake and former Treasurer Scott Morrison have noted the low wage growth is a significant drag on Government revenue and general demand,” the CPSU said.
“The Reserve Bank of Australia Governor Philip Lowe has also said that low wages threaten economic growth and that workers’ incomes need to rise,” it said.
The new APS wages Policy can be accessed in detail at this PS News link.
