The state government clearly has some work to do if it expects its public service wage freeze to get through the Legislative Council.
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The Crown Employees (Salaries) Bill 2014 was tabled on Tuesday as part of the government’s bid to save $50 million a year over the forward estimates.
However, the reality of the bill was far different from the perception sold to voters.
The perception was that the 2 per cent wage increase would be zero for the next year and then revert back to 2 per cent in subsequent years.
In many ways, this seemed like a palatable budget measure, especially if it saved the jobs of 500 public servants.
We now learn that in addition to the annual pay increase freeze, normal annual increments will also be frozen for 12 months.
This is where Treasurer Peter Gutwein is likely to face a roadblock in the upper house, especially from the likes of Michael Gaffney (former teacher), Ruth Forest (former nurse) and Ivan Dean (former policeman).
The pay increment freeze will impact disproportionately on young public servants – the nurses, teachers and police officers advancing up the ranks and relying on a year’s service increment.
Those mature public servants with several years’ experience will only lose the 2 per cent annual increase because their salaries have already plateaued.
The conundrum for the Legislative Council is that knocking back this budget measure could well force the government to axe 500 more public servants to achieve the desired budget outcome.
Curiously, Launceston MLC Rosemary Armitage believes the pay freeze legislation should have been tabled before the budget.
The two are inextricably linked so MLCs will need to decide whether the government has a clear budget mandate in this area or whether they see themselves like Clive Palmer’s PUP senators – ready to haggle on every proposed saving.
Some MLCs have suggested that the government should have a plan B on this issue – the MLCs may also need a plan B if they oppose such a clear plank of the budget.