PSA will fight Government move to cut pay for super increase

The PSA plans to vigorously fight the State Government proposals to cut pay for public sector workers to accommodate an increase in the superannuation guarantee levy legislated by the Federal Government. This announcement was made without prior consultation with the PSA. The Government’s public sector wage policy is capped at 2.5% and it is proposed the super increase of 0.25% be treated as an employee-related cost and as such will reduce the salary increase to 2.25%, a wage cut in real terms. The PSA fought hard against the imposition of the 2.5% wages policy in the first instance including a challenge to the High Court of Australia and will not stand by and allow the Government to change its own rules on an economic whim. The PSA is firmly of the view that the payment of superannuation is a Government responsibility, as the employer, which should under no circumstances be turned into what will only be an additional burden on workers. PSA has sought legal advice on this issue. As per our email to members on 24 April, our wage applications for a 2.5% variation of a number of awards will be heard by the Industrial Relations Commission on 22 May. At that time we will strenuously argue for the payment of the 2.5% pay rise in full. A special meeting of the PSA’s Executive on 3 May resolved that: “The PSA will continue to pursue its 2.5% salaries application on 22 May. The increase in superannuation is the employer’s responsibility. The PSA will not agree to discounting the 2.5% by the 0.25% increase in superannuation under the Superannuation Guarantee Act.” Murray Engleheart Acting OIC Communications

Updated 22/8/2013

A win for democracy
The parliament has today rejected the Government’s attempt to change the law to override the PSA‘s pay win in the Industrial Relations Commission
The Opposition, The Greens, Christian Democrats (Nile) and The Shooters and Fishers Party combined to vote down the regulation the Government had made to discount the 2.5% pay cap by the 0.25% increase in the superannuation guarantee. 
The Government introduced the regulation to change the law - and its own policy - when the Industrial Commission ruled in favour of the PSA, stating that the 2.5% was not to be cut by the rise in super.
The Government has said that it would appeal the Commission’s decision if the regulation was disallowed.
The Government should now honour its own wages policy and immediately pay the full 2.5% increase to all public sector workers.
They have lost in court and now they have lost in the parliament. Its time they accepted the umpires decision and not delay payment of the full increase with further legal manoeuvring.
The Government should also stop threatening that the super increase will lead to further job losses. On their own budget figures they can absorb the increase and still have a surplus by the end of the forward estimates.
Paying superannuation increases in full will not put the State's budget into the red. But cutting jobs will further damage services to the community and the economy.


Anne Gardiner
General Secretary
PSA of NSW