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As inflation raises the cost of everything, tens of thousands of workers will lose $6,000 in income

Fact Checked by TDPel News Desk
By Samantha Allen

If inflation continues to grow while wages stay stagnant, NSW public sector workers could lose more than $6,000 over the next three years, according to unions.

In a report released on Sunday in Sydney, Unions NSW warned that the estimates will result in real wage losses for teachers, police, firefighters, jail guards, and bus drivers.

It comes as public employees in NSW are threatening to strike on Wednesday unless the state government commits to a 5.4% wage increase by Monday.

According to a report by Professor David Peetz of Griffith University Business School, the median public sector wage could shrink by $6156.08 over the next three years.

Tradeswomen (pictured) and tradesmen are likely to see their real wages go down as inflation outstrips pay rises.This prognosis is based on expected inflation increases and the state government’s pay ceiling of 2.5 percent.

Teachers in NSW public schools who went on strike last month over pay and conditions could lose roughly $6,500 in the next three years.

Over the same time period, firefighters’ pay packets would be down $5,800, and nurses’ pay packets would be down $5,200.

Some of the state’s most critical workers are being penalized, according to NSW Unions Secretary Mark Morey.

‘Throughout the most difficult two years in recent memory, our critical personnel saved numerous lives and kept the state operating,’ he said.

‘Now they are being asked to accept a pay cut when the cost of living rises by 5.1 percent and higher.

‘Any wage increase that is less than inflation is a pay loss.’

The union is pushing for a resolution for staff shortages and increased workloads in the 2019 state budget, as well as more secure work, allowing public employees to negotiate a pay raise, uniform wages for similar tasks across government agencies, and a promise not to privatize more important services.

Inflation hit 5.1 per cent in April, 2.7 per cent above wages growth, leaving Australians struggling to keep up with the rising cost of livingUnions will escalate industrial action across the NSW public sector if Premier [Dominic] Perrottet refuses to fully address these issues.’ Mr. Morey explained.

In April, inflation reached 5.1 percent, 2.7 percent more than wage growth, leaving Australians struggling to keep up with soaring living costs.

It triggered calls for a minimum wage increase to benefit low-income workers, but industry organizations and labor unions can’t agree on a figure.

The federal Labor administration has written to the Fair Work Commission, which is now evaluating the national minimum wage, advising them that under current inflation rates, people’s pay packages should not go backwards.

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About Samantha Allen

Samantha Allen is a seasoned journalist and senior correspondent at TDPel Media, specializing in the intersection of maternal health, clinical wellness, and public policy. With a background in investigative reporting and a passion for data-driven storytelling, Samantha has become a trusted voice for expectant mothers and healthcare advocates worldwide. Her work focuses on translating complex medical research into actionable insights, covering everything from prenatal fitness and neonatal care to the socioeconomic impacts of healthcare legislation. At TDPel Media, Samantha leads the agency's health analytics desk, ensuring that every report is grounded in accuracy, empathy, and scientific integrity. When she isn't in the newsroom, she is an advocate for community-led wellness initiatives and an avid explorer of California’s coastal trails.