New wages policy another critical budget repair measure

• ​McGowan Government implements new public sector wages policy
• New policy ensures everyone in the public sector is treated fairly, with a $1,000 per annum increase limit for full time employees
• Politicians, judges, magistrates, councillors and WA's highest paid bureaucrats to have their pay frozen for the next four years
• New wages policy and wage freeze for positions determined by the Salaries and Allowances Tribunal will save an estimated $518 million in the State Budget

The McGowan Labor Government has introduced a new public sector wages policy to help with the difficult task of repairing the State Budget over time.

In an effort to save $518 million, the existing wages policy of a 1.5 per cent per year increase has been overhauled, with the new policy providing a $19.20 per week increase, for a 38-hour week, or $1,000 per year for public sector employees.

The $1,000 limit will be pro rata for part time and casual employees.

All new and replacement public sector industrial agreements will be subject to the new policy from today (May 12). The terms of existing enterprise agreements will be honoured.

In addition, a tightening of the existing framework for employment reclassifications will be implemented to prevent the prospect of bypassing the new wages policy.

The McGowan Government will also implement a wage freeze for all positions determined by the Salaries and Allowances Tribunal for the next four years. Legislation will be introduced to implement the freeze.

Comments attributed to Premier Mark McGowan:

"Everyone across the community needs to share the load of repairing the damage to the State's finances left behind by the Liberal National Government.

"Our new policy ensures everyone in the public sector is treated fairly and is a reasonable response given the current economic and financial circumstances.

"The State's highest paid employees, including Members of Parliament, need to accept that they need to do some of the heavy lifting and lead by example.

"I'll also be writing to Government Trading Enterprises indicating that the State Government expects all comparable positions to those covered by the Salaries and Allowances Tribunal will have a wage freeze imposed for four years."

Comments attributed to Treasurer Ben Wyatt:

"We have inherited the worst set of books in history and difficult decisions need to be made.

"Salary expenses are at unsustainable levels. Efforts by the previous government to reign it in were too little, too late and that's why we have had to make this decision.

"The State Government is taking a considered approach acknowledging the reality of our economic situation, with inflation and wages growth at unprecedented lows."

Comments attributed to Commerce and Industrial Relations Minister Bill Johnston:

"The new public sector wages policy reflects the reality of WA's economic circumstances, with real wages actually going backwards in the private sector.

"The new policy provides fairness across the whole public sector.

"Under the policy, formal offers made under the previous wages policy will be honoured."