The NSW government has offered hundreds of thousands of state public sector employees a 10.5 per cent pay rise over three years, in a move it says gives certainty to frontline workers.
The offer, to benefit more than 400,000 workers, comes with an annual $1000 “cost-of-living protection payment” against inflation, and a pledge to a collaborative approach to bargaining, the government said on Monday.
The Labor government has been working to fix a public sector recruitment crisis amid a cost of living squeeze with new industrial relations laws that permanently remove the power to cap wages.
Treasurer Daniel Mookhey said the pay offer would deliver wages growth to beat projected lifts in the cost of living over the next three financial years.
It represented a major step in upholding Labor’s election promise to pay essential workers, including hospital and school staff, fairly he said.
“This is about giving certainty for hard-working families across NSW, with a three-year offer to see pay and conditions improve,” Mookhey said in a statement.
“It creates a new, fair framework that can deliver a better outcome for everyone.”
Industrial Relations Minister Sophie Cotsis said the offer was part of rebuilding essential services in NSW.
“This baseline offer, lays the foundation for a fairer system for workers and their families in NSW,” she said.
The government’s offer is said to fall well short of pay demands being made by some unions, such as those representing firefighters and nurses.