|More Public Sector JOB LOSSES|
Monday, 11 January 2010
Based on Budget statements made by Treasurer Kevin Foley, further public sector jobs will be cut by the Rann Government (if re-elected) as a result of recent public sector wage deals.
“In last year’s Budget Mr Foley made it quite clear that if public sector wage increases were not limited to 2.5 per cent per annum there would be further public sector job cuts above the 1,600 FTEs already announced,” Shadow Minister for Finance Rob Lucas said today.
Mr Foley’s Budget Papers noted:
“The Government will seek to limit future wage outcomes to 2.5 per cent per annum in an effort to provide a real wage increase to public sector employees, prevent further job losses being required, and ensure the sustainability of the state’s finances”
“On 4 June 2009, Mr Foley also said that people in the private sector were losing their jobs and that “any increases negotiated beyond 2.5 per cent would have to be met by savings.”
“The Budget Papers also indicate that if wage increases were only 1 per cent per annum higher than the 2.5 per cent, then the annual Budget impact would be $250 million in 2012-13.
“Just prior to Christmas, the Rann Government concluded a 30 month wage deal with more than 17,000 public sector workers which included a 2.5 per cent pay rise, but also included a one off payment of $600 plus increased maternity leave and higher penalty rates.”
The actual impact in 2009-10 for the entry salary level for each classification level is shown in the following table:
Classification Salary Salary Increase Increase
ASO1 $21,281 $1,132 5.3%
ASO2 $41,303 $1,632 4.0%
ASO3 $48,102 $1,802 3.7%
ASO4 $54,974 $1,974 3.6%
ASO5 $61,309 $2,133 3.5%
“The table makes it clear that rather than a 2.5 per cent increase in the first year the increases range from 3.5 per cent up to 5.3 per cent for these five classifications,” Mr Lucas said.
“The Government has also made an offer to allied health professionals, which the Union states would currently mean a $3,000 pay rise. Again this increase would be above Mr Foley’s 2.5 per cent limit.
“Finally, the resolution of the teachers’ pay dispute will obviously be at a level significantly above the 2.5 per cent limit, although it is possible Mr Foley has excluded this dispute from the limit.
“It is now clear – based on Mr Foley’s own statements – that he will now have to implement further public sector job cuts if the Rann Government was re-elected in March 2010.
“It should be noted that after promising no job cuts at the last election, the Rann Government has already announced cuts of 1,600 in the 2006-07 Budget, about 1,000 in the 2008-09 Budget and another 1,600 announced for the period 2009-2012.
“Mr Foley should now come clean and indicate how many more public sector jobs he would have to cut if he was re-elected in March 2010.”