Posted on 04. May, 2011 in News

Ted Baillieu’s first State Budget has affirmed concerns that the Coalition Government has broken its promises to fund reasonable pay increases to teachers, police and social and community service (SACS) sector workers, Shadow Industrial Relations Minister Tim Pallas said today.


Mr Pallas said the State Budget provides no funding whatsoever to meet wage promises to Victorian’s public sector workers beyond the 2.5% per annum contained in a wage policy that simply won’t maintain real wages for these workers.


This budget also confirms the Government’s refusal to fund all increases to Victorian SACS workers that may be over and above the $50m it has set aside for the historic pay equity test case currently before Fair Work Australia.


“The $1.6 billion in savings will place increased pressure on existing public sector workers who will be drawn into a race to the bottom through the Government’s refusal to fund public sector wages to offset increases in the cost of living” Mr Pallas said.


“These savings are earmarked as “helping Government deliver its election commitments and other initiatives funded in the 2011/2012 Budget” (BIP 3, p92).


“Although Government promised to make Victorian teachers the nation’s highest paid and to provide real wage increases to police and equal wage justice to community sector workers, its lack of budget funding shows that talk is much cheaper than action.


Mr Pallas said Ted Baillieu had also refused to rule out public sector job cuts.


“Mr Baillieu has a responsibility to ensure that Victoria continues to leads the nation when it comes to economic growth and job creation. This budget does neither,” he said.


“There is no plan to create jobs, there is no plan to attract investment to Victoria and there is no plan to ensure the state remains a competitive place to do business.  In fact, the Treasurer didn’t mention jobs or employment once in his budget speech.


“Public sector workers will bear the brunt of Mr Baillieu’s cuts to consultants, legal advice and ministerial office staff numbers and be left to deliver all of the Government’s promises with less support and wages that just can’t keep pace with the cost of living.”


“In a particularly myopic and mean-spirited move, the Government has also confirmed that the Early Completion Bonus Payment to employers of apprentices will be phased out from 30th June 2011.”


“In its first budget, this Government has left no doubt as to its lack of vision and preparedness to invest in infrastructure, services and no major projects.

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