Pay ‘freeze’ sparks anger and back-pedalling

ASMS and other public sector unions took an angry and strong message to Public Service Minister Chris Hipkins last month after what can only be described as a major misstep by the Government in its call for continuing public sector pay restraint.

The Minister had ruled out pay increases for the next three years for those earning over $100,000. Coming amid MECA negotiations, it raised serious issues around the principles of good faith bargaining. ASMS publicly described it as a “kick in the teeth”. Other unions, such as the Public Service Association, the Nurses Organisation, and the Police Association expressed shock and outrage.

ASMS members responded with a flood of

emails to us. Here is a taste of the reaction: “I and many colleagues I have spoken to who were contemplating moving more time out of public to private (but we’re not doing so at this stage) are now determined, this was just the push we needed.”

“As inflation goes up, our taxes have increased and our superannuation employer contribution stays static – this is in effect a cumulative pay cut in an environment where workloads, acuity, staff shortages and resource constraints are increasing.”

“As a result of this announcement I have already looked at ads for my specialty in Australia and will continue to do so.”

“I AGREE SOME PEOPLE MIGHT LEAVE FOR OTHER COUNTRIES, BUT A LARGE MAJORITY WILL STAY BUT WILL BE DEMORALISED, FEEL DEVALUED, AND DEMOTIVATED LEADING TO FURTHER BURNOUT AND DROP IN QUALITY OF SERVICES.”

“Hurting the workforce that they have relied on and publicly acclaimed is deceitful and shows poor character even for politicians.”

“I guess pay doesn’t fix burnout – maybe we should be gracious about the pay this round and focus on appropriate staffing levels (which will cost more but is not a ‘pay increase’).”

“I think – given the impact of COVID – that those of us on high incomes can take a pay freeze. I would qualify this with the opinion that this should be for one year not three years – three years is excessive.”

“Of course, those on less than 60k deserve a pay rise but so does everyone even just to keep up with CPI otherwise it is effectively a wage drop.”

“ABSOLUTELY DISGUSTING. WAIT FOR THE EXODUS. THIS IS THE THANKS WE GET FOR WORKING THROUGH COVID.”

“POSTCOVID WE HAVE BEEN WORKED OFF OUR FEET AND STRESSED TO THE MAX TO GET THIS GOVERNMENT’S TARGETS BACK ON TRACK. I’M AFRAID THE LAST OUNCE OF GOODWILL HAS BEEN EXHAUSTED.” “Actually, I think the pay freeze is fine from an SMO point of view. The government has done a fine job protecting us from Covid, but it cost money. Got to be saved somewhere.”

Following a crisis meeting with the affected unions, the Government performed some quick back-pedalling. Mr Hipkins gave an assurance there would be no pay freeze, and negotiations will take place in good faith. It was also agreed that the pay expectations for public sector workers would be reviewed next year, rather than in three years, and that cost-ofliving increases would remain on the table. Addressing wellbeing and workload issues were also stressed as priorities. The Council of Trade Unions said that although the meeting was constructive, the public sector unions had made it crystal clear how unhappy and angry their members were in response to the initial policy announcement.