Unions’ Pay Freeze

The Liberal Government is looking forward to seeing the Unions’ savings proposal as we get on with the job of fixing the Budget mess.

However, if the unions’ proposal does not deliver the full $50 million in savings, then additional savings will have to be made.

Our preference would be for the unions to support an 18 month pay freeze without changing increments, which is the position we held after concerns were raised by the Upper House.

This option would deliver the full year $50 million in savings which is equivalent to around 500 FTEs in the public sector.

Anything less will not deliver the $50 million in savings, however any savings proposed would be used to directly and proportionately reduce the number of jobs that would be lost.
A pay freeze from all unions for 12 months would provide around $30 million in savings and would only protect around 300 jobs.

A pay freeze from all unions of just 6 months, as some unions seem to be suggesting, would only provide around $15 million in savings and only protect 150 jobs.

We will honour our word – if the unions’ offer is genuine and without caveats, we will accept it in good faith. But, as we have said, if their offer does not provide the full $50 million in savings we have no other choice but to find additional savings.

The ball is in the unions’ court – be genuine, be reasonable and jobs will be saved.

I urge unions’ to put their proposals forward to Government so we can assess the level of savings.

The Liberal Government is resolute in getting the Budget back on track and we will not be deterred.
Peter Gutwein, Treasurer