Pay concession for public servants

The state government’s 140,000 strong workforce can expect a pay bonus next year following a decision to bring forward a review of the public sector wages policy.

Public sector unions are tipped to argue that their members are entitled to significant pay increases to compensate for the tight rein on wages which has applied since Labor won power in 2017.

But the government will be keen to ensure that the increases are modest, an acknowledgment of the uncertainty over just how long the royalties bonanza, generated by high iron ore prices will continue.

Premier Mark McGowan announced that the review of the government’s policy, which had been scheduled for 2023, would start next week because of the stronger than expected financial position.

It will be undertaken by Treasury officials and the Government Sector Labour Relations Division, over the next two months, with a decision on the new policy expected early next year.

Under the current approach judges, politicians and senior public servants have had their pay frozen, and other public sector workers have had annual increases of a flat $1,000, as Labor embarked on a strategy of “budget repair”, blaming the previous Liberal-National Party administration.

The latest move is a concession to public sector unions, whose bargaining power has been inhibited by the state of the private sector workforce, where many employees have either had their pay frozen or been sacked because of COVID restrictions.

But public servants who are hoping for compensation for the tight policy over the past four years are likely to be disappointed. According to a government source the review will be “forward looking”, rather than focussing on the past.

Salaries and wages account for more than 40 per cent of the Budget. So even a modest increase across the board can have a significant impact on the overall payroll.