After years of struggle, NSW public sector wages cap is removed

December 6, 2023
Issue 
NSW teachers rallying for a pay rise in December 2021. Photo: Pip Hinman

鈥淚t鈥檚 official: after more than a decade the failed NSW public sector wages cap is gone,鈥 Mark Morey, secretary of Unions NSW said on December 1.

The was passed on November 30, which removes the Coalition-imposed wages cap of 3% on聽public sector workers.

鈥淩emoving the cap means our essential public sector workers can now bargain and campaign for fair pay rises,鈥 Morey said.

He said the Coalition government had ensured 鈥渆ssential services were driven into crisis鈥 because 鈥淣SW could no longer attract and retain the essential workers needed鈥.

鈥淲e鈥檝e all heard the stories of our nurses, teachers, firefighters, paramedics, child protection workers, cleaners and so many other workers, leaving their professions, or moving interstate, for better pay because they can鈥檛 make ends meet.鈥

He said the parliament only passed the law 鈥渂ecause of your campaigning鈥.

Over several years, industrial campaigns, including strikes and mass rallies, have been waged by public sector workers, nurses, paramedics, teachers, firefighters and public transport staff.

However, a key issue remains: fair wages for public sector workers. The NSW Public Service Association (PSA) had earlier accepted a pay rise of 4%, which is still below the inflation rate of more than 5%.

PSA Secretary Stewart Little said in July that the pay rise followed years of campaigning and lobbying by the union and was the biggest since 2003-2004.

鈥淲hen the NSW government made the pay offer, the PSA surveyed its members, with 80 per cent of respondents agreeing to accept the increase,鈥 he told the July 21 Australian Financial Review.

鈥淭he increase comes after a 12-year cap of up to 2.5 per cent on wages implemented by the previous state government which was inclusive of any superannuation increases.鈥

Morey said the government鈥檚 new law will bring back the Industrial Relations Court and 鈥渇ix鈥 the broken industrial relations system.

It will also bring back a dedicated court for unions to pursue industrial disputes.

It will establish Workplace Health and Safety prosecutions, within the court, so that unions can prosecute employers who breach their work, health and safety responsibilities.

The NSW Greens have warned of the possible danger of a 鈥渄e facto wage cap by stealth鈥, arising from the new Industrial Relations Commission鈥檚 terms of reference.

Greens industrial relations spokesperson Jenny Leong proposed an amendment to ensure the effect of any of the commission鈥檚 decisions on low-paid workers was considered alongside the effect on the government鈥檚 finances. Labor did not accept it.

鈥淲e are concerned that the proposed insertion of a provision requiring the industrial relations commission to consider the NSW government鈥檚 fiscal outlook and position when exercising their functions runs the risk of imposing a de facto wages cap by stealth,鈥 Leong told the 聽on November 28.

Meanwhile, paramedics, nurses and teachers are still pushing for a fair pay rise.

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