Public Service Rejects Governments 10.5 Percent Pay Rise Offer

Parliament House in Canberra, Australia, on April 1, 2022. Rebecca Zhu/The Epoch Times

The Australian public service union has rejected the federal government’s pay rise offer, labelling it as “not good enough!”

The Community and Public Sector Union (CPSU) voted overwhelmingly to reject the offer, with 86 percent of the 15,000 members who voted in the ballot choosing to turn down the government’s first offer.

They had called for a 20 percent pay rise over the next three years, with public servants receiving a nine percent pay rise during the first year, followed by a six percent in the second and five percent in the third.

CPSU national secretary Melissa Donnelly in a media statement obtained by The Epoch Times, said the union members want a fair deal that is delivered on time.

“They want to see the government bring a pay rise to the table that acknowledges what they have endured over the past decade, one that takes steps to address the attraction and retention crisis, and one that will go some way in easing current financial pressures.

“Our members have clearly communicated that a 10.5 percent pay offer achieves none of those goals.”

The CPSU has announced it has already lodged an application with the Fair Work Commission for a protected action ballot at the Services Australia department, which has the largest number of Australian Public Service (APS) employees, which Donnelly said was not taken lightly.

Services Australia is regarded as an industrialised stronghold of the APS, with the CPSU running robust campaigns against punitive working conditions like timed toilet breaks to garner support.

“This is a strategic decision that puts our members in a position where they can increase pressure on the APSC [Australian Public Service Commission] and the federal government to deliver better outcomes in bargaining if necessary,” Donnelly said.

The federal government had offered Commonwealth public servants a 10.5 percent pay rise over the next three years in May following negotiations.

It was the largest pay rise to be offered to APS employees in more than 10 years and will see public servants get a four percent rise in the first year, 3.5 percent in the second year, and three percent in the third year.

School teachers march along Macquarie St towards NSW Parliament on May 04, 2022 in Sydney, Australia. Photo by Jenny Evans/Getty Images

“The Australian government is committed to providing APS employees with fair and equitable conditions of employment through genuine APS bargaining,” the federal government said in a statement.

“In addition to negotiating a set of common terms and conditions, we are also seeking to provide a fair and affordable pay rise for APS employees.

“At the end of this process, APS employees can expect a package of pay and common conditions that better position the APS as a model employer and employer of choice.”

The federal government is said to have taken into account wages around the country, economic indicators, the labour market, and budgetary factors into consideration when making the decision.

APS Workers Were Scathing About the Offer

Some of the commentary made by members of the CPSU on the offer was scathing.

“Nowhere near close to cost-of-living increases and inflation, but even more importantly—fails to bridge the gap around past bargaining agreements and the extensive delays and pain we experienced back then. Just not good enough!” one APS member said.

Currently, the Australian Bureau of Statistics noted inflation has risen 6.8 percent in the year to April 2023. Treasury forecasts it will decline to 3.25 percent in 2024/25 and reach 2.5 percent by 2026/27.

Another union member said that the offer was a poor one, with it being the same as their rates increase, “no incentive for me to stay after 15 years in the Public Service.”

“Years of subpar wage growth drive the need for a larger increase, as does inflation. Further, without a suitable pay rise for the APS, the gap between the public sector and private sector will continue to grow, pushing more incredible people into the private sector,” another said.

Government Expected Public Service Dispute

Public Service Minister Katy Gallagher, herself a former CPSU organiser, has said she expects there to be disputation as part of the bargaining process.

The pay offer comes after Gallagher announced on May 9 that the Albanese government would be embarking on an ambitious reform agenda for the APS.

“The Albanese Labor Government is making the necessary investments in the 2023-24 Budget to continue the job of rebuilding the service after ten years of neglect under the former Coalition government,” Gallagher said.

“The APS performs a critical role in our democratic system, it should be valued by the government and be focused on serving our citizens.”

As part of the 2023-24 Budget, the federal government will spend $10.9 million (US$7.3 million) to establish an in-house consulting function, $8.4 million to build the capability of the APS to address service-wide challenges, and $3.4 million to support the government’s commitment to achieving five percent First Nations employment by 2030.

Additionally, they will also spend $195.6 million to provide faster services and help address the backlog of claims for veterans through enhancements to the Department of Veterans.