Fears public servants could be short-changed in government’s new ‘public sector rejuvenation’ scheme

The state government is planning to offer “jaded” employees $50,000 to walk out the door, sparking fears they would be short-changed.

A plan to offer $50,000 incentives for public servants to leave their government job has sparked fears they will be short-changed.

The state government’s newly announced “public sector workforce rejuvenation” scheme will offer workers with 10 years or more service in the public sector a $50,000 termination payment.

Employees with less than 10 years’ service will receive an offer of $25,000.

Positions vacated by these workers will be opened up to “more enthusiastic” graduates and trainees.

It differs from the existing targeted voluntary separation package scheme, which is for workers whose positions are no longer required by the government.

Under the Public Sector Enterprise Agreement, employees offered such a package are entitled to 10 weeks’ pay, plus two weeks’ pay for each completed year of service.

If employees accept the offer within three months, they are entitled to a $15,000 bonus. For someone who worked more than 10 years in the public service, a payout under this arrangement usually would be far more than $50,000.

Figures obtained by opposition treasury spokesman Stephen Mullighan show the state government spent $245.9m on targeted voluntary separation packages for 2356 public servants, at an average of $104,371 a worker, since being elected in March 2018.

Opposition treasury spokesman Stephen Mullighan criticised the new ‘rejuvenation’ plan.

According to 2018-19 budget papers, there were a forecast 81,712 full-time government employees at June 30 this year. But, in Tuesday’s budget papers, the current estimate is 86,133.

According to budget projections, the rejuvenation scheme will not lead to a reduction in government employees.

“Not only have (the government) wasted $250m over the last three years paying people to leave the public service while at the same time recruiting people … now they are proposing a new scheme that won’t be attractive enough for people to take it up,” Mr Mullighan said.

“This is yet more incompetent public sector management by the Liberal government.”

Mr Lucas said it was “hypocritical” of Mr Mullighan to criticise the scheme because the former Labor government ran a similar operation for teachers and nurses.

Treasurer Rob Lucas defended the scheme, and branded Mr Mullighan “hypocritical”. Picture: Tom Huntley

“It’s sadly an example of Labor trying to criticise for the sake of criticising,” he said.

“The scheme is intended to enhance and rejuvenate our public sector with new recruits who are excited about the future of our state.

“In a workforce of 100,000 people there will be a small number of people who are tired, overworked or jaded and looking forward to retirement.”

Public Service Association general secretary Nev Kitchin labelled the scheme “regressive and purely ideological”.

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