The McGowan Government has today announced a new public sector wages policy following extensive consultation with public sector unions and other stakeholders since the 2021-22 State Budget.
The two-year policy provides more than 150,000 public sector employees with above CPI wage rises. The policy will apply prospectively to industrial agreements that have expired since the 2021-22 State Budget.
The new wages policy provides public sector employees with a 2.5 per cent wage increase per annum and the choice by industrial agreement of either a one-off $1,000 payment or an additional 0.25 per cent per annum for negotiated reforms.
Under the one-off $1,000 payment option, this means an employee on less than $65,000 would receive more than a four per cent pay rise in the first year of an agreement.
In addition, a new broader bargaining framework is being developed which will allow unions to negotiate on a range of issues important to members raised during consultations such as fairness and equity in the workplace.
The new policy replaces the $1,000 wages policy, which has been a critical measure in repairing the State’s finances after the record operating deficits and debt under the previous Liberal National Government.
More than 95 per cent of public sector workers have completed four or more years on the $1,000 wages policy.
The McGowan Government brought forward the review of the wages policy at the 2021 22 State Budget, given the State’s stronger than expected economic and financial position despite the COVID 19 pandemic.
The new wages policy is expected to cost $1.2 billion over the next four years, which is a sustainable increase given the State’s improved financial position.
As stated by Premier Mark McGowan:
“I am pleased to announce our new sensible and sustainable public sector wages policy today.
“Our public sector workers, including nurses, teachers, police and public servants have worked hard to make Western Australia the safest place to live – with one of the strongest economies in the world – throughout the COVID-19 pandemic.
“I’d like to thank our public sector workforce for their contribution to help put the State’s finances on a more sustainable footing after the terrible financial mismanagement under the previous Liberal National Government.
“Our strong financial and economic performance throughout COVID-19 means that we are now in a position to deliver a new wages policy, which is sustainable and deliverable, and rewards the efforts of our public sector workers.”
As stated by Industrial Relations Minister Stephen Dawson:
“The new wages policy is excellent news for our valued public sector workforce.
“The policy responds to the feedback we received from unions and other stakeholders during the productive consultation that has occurred since the State Budget.
“The new policy delivers above CPI wage rises that will benefit tens of thousands of public sector workers and significantly provides a new bargaining framework that enables unions to negotiate on the issues that are important to their workers.”
