Today the annual Wage Price Index (WPI) for the private sector was published, which is 1.9%.
Ordinarily this figure would have nothing to do with pay rises in the APS or broader federal public sector, but in November last year the government adopted the private sector WPI as the new pay cap for federal public sector pay rises.
Capping your pay rises to the private sector WPI will hold back economic recovery and wage growth for all workers. CPSU members are already getting involved and building our campaign for fair pay and genuine bargaining. You can help by joining today.
The new maximum pay rise that will apply for the next 12 months is 1.9%.
Under any new enterprise agreements or determinations, pay rises will be capped at:
Maximum pay rise
Date range for pay rises falling due
||1 September 2021 – 31 August 2022
||1 September 2022 – 31 August 2023
||1 September 2023 – 31 August 2024
When am I affected?
- The entire federal public sector will be affected eventually.
- Pay increases under existing enterprise agreements and determinations made before the new policy will go ahead.
- However, the new mystery pay rates will apply when you come to negotiate a new enterprise agreement, or when your agency decides to make a determination.
Bad for the federal public sector, bad for workers everywhere
- Pay increases will be unknown at the time you vote on them. The new wage cap sees wage rises calculated at a later date. Employees will be required to vote on an agreement that leaves future pay rates unknown.
- Wages are at a historic low. The WPI has been at historic lows for some time, and has dropped to even lower levels since the pandemic recession.
- Pay is not negotiated. Under the new Bargaining Policy, pay cannot be genuinely negotiated by unions, workers and agencies, instead, it is dictated by government.
- This is a decision by government to hold back wages… for all Australian workers. The Reserve Bank has recognised that this Government's wages policy will hold back economic recovery across the board. This is bad for workers in the APS, and bad for workers everywhere.
What can you do?
We will need to work together to shift the government’s position so that bargaining in the federal public sector is genuine and fair.
Become a member today