The agreement covers more than 90,000 public sector workers – nearly a quarter of the state government’s workforce – including prison guards, school assistants and other essential workers.
Using the government’s new mutual bargaining framework, the PSA and the government have agreed to:
- Work towards reducing injury rates, to help minimise pressure on the state’s workers compensation scheme.
- Overhaul redeployment policies to reduce redundancy costs, encouraging workers to stay rather than to leave the public service.
- Modernise awards to remove redundant allowances, like the “word processing allowance.”
These savings allowed the government and the PSA to reach agreement on an increase of 11.4 per cent compounded over three years.
It follows a 4.5 per cent pay rise delivered last year, which was the highest in more than a decade.
Under this policy, a typical public sector award employee is $5,274.89 better off now than under the previous government’s wage cap. At the same time, the multi-year agreement creates budget certainty into the future.
Treasurer Daniel Mookhey said:
“This agreement is proof that a mature government can bargain to reach a deal that’s good for taxpayers and good for workers.
“Our mutual gains bargaining system has worked. In a cost-of-living crisis, we are delivering meaningful pay rises to people.
“We went to the election promising to scrap the wages cap. We’ve done that. And our work continues.
“I want to thank the PSA leadership and their members for tough but fair negotiations.
Minister for Industrial Relations Sophie Cotsis said:
“I welcome the agreement with the Public Service Association and thank them for their advocacy.
“This is a good step forward but there is always more work to do to ensure we have the best public service in the world.”
