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.
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.
Unions 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.