Jobs Exodus Fear Follow PS Pay Cap

  • 29 February 2016

Fears of a massive jobs exodus from the west could be realised with a planned 'real cut' to wages as the Barnett Government in Western Australia imposes a 1.5%-a-year wages cap for agreements replacing those expiring after June 1 this year.  The Government says the cap is "consistent" with State Treasury's CPI forecast for 2015-2016 however UnionsWA secretary Meredith Hammat said the Government's forecast is for a 2% increase in the CPI for 2016-17, "so a pay cap of 1.5% represents a real cut".  The policy also prohibits backdating of pay increases.  W.A. Treasurer Mike Nahan said any increases above 1.5% a year would need to be "absorbed within agencies' approved salaries budgets" leaving services struggling