The State Government has announced by press release that they intend to alter their public sector wages policy downwards effective from 4 May 2009 as this will coincide with the State budget and remove $100M from public service delivery.

The government will revise its current wages policy position of 3.25% downwards to 2.5% for all new public sector Agreements reached after 4 May 2009.

The government will also remove its productivity supplementation component of 0.75% from all government agencies and replace this with a ‚Äö?Ñ??cash in the bank‚Äö?Ñ?? component which, in effect, means that the workforce must trade jobs for pay rises sought in excess of the 2.5%.

The government s press release states that they are acting to protect jobs in tough economic times but fails to point out the majority of public sector agreements are already completed for this round and run through until 2011 / 2012 except of course the Victorian Public Service Agreement.

This is a kick in the guts for the Victorian Public Service who has been applauded continually by the Premier over the last few weeks for our tireless efforts in bush fire fighting and the important recovery efforts.

So many have been giving of their time over and above their normal paid hours towards fellow Victorians so desperately in need.

Now the State Government says we must complete our complex negotiations for a new Victorian Public Service Agreement involving 32,000 employees with 10 agency schedules and 9 nexus Agreements within 5 weeks or they will change the bargaining parameters.

Not much of a thank you.

Reducing the spending capacity and wages of your workforce at a time of economic crisis seems at odds with the Federal Government's stimulus policies and will impact on jobs throughout the wider Victorian community.

The Departments will issue their own explanations to staff we expect shortly and CPSU will be seeking urgent discussions with Government to review the ramifications on our current bargaining round.

Stay Tuned.

KAREN BATT

CPSU Victorian Branch Secretary

27 March 2009