THE government says a public sector pay freeze proposal from unions doesn’t add up, raising the possibility of industrial action.
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Treasurer Peter Gutwein has pledged to consider the offer of an across-the-board six-month pay freeze contained in a letter delivered to the government yesterday.
But, as the offer is contingent on no further job cuts above the 700 promised in the budget and does not deliver the 18-month pay freeze Mr Gutwein had hoped for, it is unlikely to pass muster.
‘‘We have received the unions’ proposal and the financial implications of the proposal are now being considered,’’ he said.
‘‘(But) on first glance, the unions’ proposal doesn’t add up.’’
Mr Gutwein says up to 500 jobs, including front-line health and education staff, could be cut if the pay freeze is not successful.
Community and Public Sector Union secretary Tom Lynch said he was still optimistic of the offer being accepted, and of the government accepting the opportunity to negotiate about savings beyond the current financial year.
However, he said if the offer was rejected, it raised the prospect of industrial action.
‘‘We still have some options – there are still industrial laws in this state. We will be looking at those options depending on how the government responds,’’ he said.
The unions’ letter accuses the government of not acting in good faith, and of breaking its election promise not to cut front-line services.
‘‘We’re at a loss to understand why your government would reject such an offer given it will mean jobs can be protected at least until mid-2015,’’ the letter says.
Budget figures show the state’s wages bill is expected to be $2.4 billion this financial year, compared with $1.6 billion in 2004-05.
At $695 million this year, the Education Department has the biggest wages bill. Department of Health and Human Services wages will cost $193 million.
KEY POINTS
Tasmania’s total wages bill for 2014-15: $2.4 billion.
Tasmania’s total wages bill in 2004-05: $1.56 billion.
Wages bill by department:
Education: $694.8 million.
Finance: $394.7 million.
Health and Human Services: $192.6 million.
Police and Emergency Services: $154.9 million.
Primary Industries, Parks, Water and Environment: $106.7 million.
Source: Tasmanian Budget 2014-15, 2005-06.