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NSW Government’s super sneak

Jul 5, 2013Hot Topic

In what has been kindly described as a “sneaky manoeuvre” by some, the O’Farrell Government has moved to undo the effect of a recent NSW Industrial Relations Commission ruling that public sector workers should not be required to trade off superannuation increases for wage rises.

Following the IRC ruling, the NSW Government simply amended the regulation that clarify its intention to have public sector workers pay for their own superannuation increase.

The changes were made on Friday afternoon just as the school holidays began and things were heating up in Canberra, in what is being criticised as an attempt to slide them under the radar.

The Federal Government’s recent changes to superannuation contributions call upon all employers, including the NSW State Government, to increase contributions (from 9%) by .25% in July and incrementally until they reach 12% in 2019.

Treasurer Mike Baird move to absorb the .25% super increase into the 2.5% capped public sector wage increase, has effectively reduced pay increases promised to the public sector to 2.25%.

The Treasurer has continually argued that because superannuation is an “employee related cost” it should therefore be included in any wage increase as per regulations surrounding public sector wage increases.

The IRC disagreed, ruling that increases in super were not to be made at the expense of what have already been called “stringent” wage increases.

The government’s move has sparked uproar among union members and the public who are outraged that the state government has so blatantly disregarded the ruling of an independent commission in an attempt to save money.

What do you make of the State Government’s attempt to make public sector employees absorb the cost of the super increases? Fair enough or another sneaky attack on public sector workers?