The recently released state budget contains a change to the state wages policy.

This announcement will reduce available pay increases from 2% per year to 1.5% per year and will be applied to any agreements where negotiations have not commenced.

This change to the wages policy is bad for public sector workers and bad for the economy.

It’s wrong for governments to limit workers’ ability to bargain for improved wages.

And wrong to stifle spending growth across the economy by limiting potential wage increases for a large part of the Victorian workforce. It will only hamper our economic recovery from successive lockdowns.

Through the professionalism and negotiating skills of ASU bargaining teams, we have been able to limit the effect of the previous wages policy on members wage growth. And we will keep working to improve wages and conditions in future negotiations.

But workers should not be hampered in their efforts to negotiate with their employer by a policy that limits reasonable wage growth.

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