Union fight looms as State Government refuses to buckle on salary offer to teachers

Teachers are bracing for a pay battle after the State Treasurer said pay rises of 3 per cent or more are unaffordable — and clarified how many public servants will leave in the next year.

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Treasurer Rob Lucas has thrown down the gauntlet to the Australian Education Union as they prepare to strike over the State Government’s pay offer, saying there’s no room in the Budget for “excessive wage and condition demands”.

Mr Lucas said no “amount of strike action” would give the government the money to be able to afford pay rises as high as 3.5 per cent.

The AEU announced on Monday it would strike for a full day on Monday July 1, after declaring the State Government’s offer — which includes a 2.35 per cent pay increase — was not sufficient to be put to its members.

Mr Lucas said any industrial action would not alter the Budget position.

“There’s no amount of singing Johnny Farnham songs and days of protest in the streets of Adelaide that will actually give me as Treasurer any more money to pay the 3 per cent to 3.5 per cent pay increase that they are demanding,” Mr Lucas said.

The Budget document flags “responsible wage outcomes” but Mr Lucas said he would not publicly outline his government’s wage cap.

“We have settled a number of agreements at 2 per cent, we’ve offered 2.35 per cent to the AEU,” he said.

“Inflation is currently 1.3 per cent, so that would give you an indication of the ballpark within which we’re operating.

“We have budgeted for reasonable increases, but we’ve reduced the provision for mad money ... excessive wage increases about that reasonable level.”

Australian Education Union members rally outside the Department of Education building in Adelaide in October last year. Picture: Kelly Barnes/AAP

Mr Lucas has also flagged the total number of public servants will be cut by 577 over the next four years, reduced by the unexpected retention of 1400 Human Services staff who had previously been expected to transfer to the non-government sector.

But that means 1980 FTEs currently employed in the public service will go in the next four years, with almost 1600 forecast to leave in the next 12 months.

The number of public servants has risen by 191 since last year’s Budget to 85,142 full-time employees.

The increases are being attributed to budget pressures in the Department of Health and Wellbeing.

That’s despite the State Government handing out golden handshakes worth more than $30 million in the 2018-19 financial year.