[Greens-Media] Media Release: Court of Appeal backs NSW Government wages policy

[David Shoebridge]

Media Release

6 May 2014



Today's decision by the Court of Appeal allowing the Government to squeeze compulsory superannuation increases from within the public sector 2.5% wage cap will see a cut in real wages for workers in NSW.



This decision overturns the orders of the Industrial Relations Commission that awarded public sector employees a 2.5% increase in their award payments that they were to receive in addition to the 0.25% increase in their superannuation guarantee payment.



The Industrial Relations Commission found that the Coalition's wage cap policy that limited wage increases to a maximum of 2.5% excluded any increase in superannuation.



The Court of Appeal found that the 2.5% wage cap included other employment related costs including superannuation.



The end result is that the Award increase of 2.5% has been overturned and the Coalition government will be seeking that any increase in wages be limited to 2.25% so that,

together with the 0.25% increase in superannuation, the total increase in employee related costs does not exceed 2.5%.



David Shoebridge Greens MP and Industrial Relations Spokesperson said:



"This will come as a real kick in the guts for the thousands of hard working public servants who will see their wages cut by the Coalition government.



"Working people need a decent wage increase now to meet the everyday costs of living, not just a marginal increase in their superannuation that can't touch till they are 70.



"A 0.25% increase in superannuation that most workers can't touch for years, or even decades, is no substitute for a decent pay packet now.



"Having budgeted for a 2.5% wage increase it will be hard for many public servants to deal with this cut in their wages.



"This decision highlights just how unfair the Coalition's draconian wage cap policy is for hardworking employees in the public sector," Mr Shoebridge said.



Kym Chapple

Policy, Media and Legislation Advisor

Office of Greens MP David Shoebridge

P: (02) 9230 3030|M: 0433 680 244|T: @kymtje<http://twitter.com/#!/thebigriboldi>

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