[Australia] New South Wales will abolish wage cap

In Australia, the New South Wales (NSW) government has introduced industrial reforms intended to permanently scrap the wage cap affecting essential workers in the state, HRD reports.

On November 23, Industrial Relations Minister Sophie Cotsis introduced the Industrial Relations Amendment Bill 2023 to Parliament.

The reforms reportedly seek to repeal the Section 146C of the Industrial Relations Act 1996, which allows the government to regulate a wage cap for public sector employment.

Among those whose wages will be impacted by the changes are paramedics, nurses, teachers, police, firefighters and cleaners. Ms Cotsis said these workers are "furious" after having their pay capped for 12 years.

"This reform stops that from happening again and delivers on Labor's election promise to scrap the wages cap once and for all," she said in a statement.

The move to permanently abolish the wage caps follows the government delivering a 4.5 per cent pay increase to public sector employees in June for 2023-24. A significantly higher figure than the cap that limited public sector pay rises to three per cent.

In addition to lifting the wage cap, the bill will reportedly introduce a new Mutual Gains Bargaining that will allow agencies and unions to negotiate for mutually agreed improvements for the benefits of essential workers.

In a press release, the NSW government said, "Mutual Gains Bargaining is a new cooperative negotiation model for the government and the unions which represents the state's workforce."

"It will be supported by the Treasury's productivity unit to link pay rises to innovation and productivity in the delivery of essential public services."

The government reportedly noted that the Industrial Relations Commission is also mandated to consider the state's fiscal position and outlook in determining pay rises.

Source: HRD

(Links and quotes via original reporting)

In Australia, the New South Wales (NSW) government has introduced industrial reforms intended to permanently scrap the wage cap affecting essential workers in the state, HRD reports.

On November 23, Industrial Relations Minister Sophie Cotsis introduced the Industrial Relations Amendment Bill 2023 to Parliament.

The reforms reportedly seek to repeal the Section 146C of the Industrial Relations Act 1996, which allows the government to regulate a wage cap for public sector employment.

Among those whose wages will be impacted by the changes are paramedics, nurses, teachers, police, firefighters and cleaners. Ms Cotsis said these workers are "furious" after having their pay capped for 12 years.

"This reform stops that from happening again and delivers on Labor's election promise to scrap the wages cap once and for all," she said in a statement.

The move to permanently abolish the wage caps follows the government delivering a 4.5 per cent pay increase to public sector employees in June for 2023-24. A significantly higher figure than the cap that limited public sector pay rises to three per cent.

In addition to lifting the wage cap, the bill will reportedly introduce a new Mutual Gains Bargaining that will allow agencies and unions to negotiate for mutually agreed improvements for the benefits of essential workers.

In a press release, the NSW government said, "Mutual Gains Bargaining is a new cooperative negotiation model for the government and the unions which represents the state's workforce."

"It will be supported by the Treasury's productivity unit to link pay rises to innovation and productivity in the delivery of essential public services."

The government reportedly noted that the Industrial Relations Commission is also mandated to consider the state's fiscal position and outlook in determining pay rises.

Source: HRD

(Links and quotes via original reporting)