Coronavirus: Gold Coast business leaders slam public sector pay rise talks

Queensland’s 224,000 public servants have had their pay rises frozen, which Premier Annastacia Palaszczuk says is the only sensible decision during hard times after Gold Coast business leaders slammed the wage increase as “disgusting”.

Business bosses are furious that public servants are getting a pay rise as hundreds of Gold Coasters are forced to line up for Government benefits Picture: Jerad Williams

QUEENSLAND’S public servants will have their pay rises frozen after Premier Annastacia Palaszczuk warned her workforce these were hard times.

The backflip on awarding the state’s 224,000 public servants pay rises of 2.5 per cent, plus one-off cash bonuses of $1250, comes amid criticism the rises are well above inflation and were taking place at a time that private companies cutting wages or standing down workers.

Ms Palaszczuk was questioned over the timing of the pay rises on the Today Show this morning.

“Let me make it very clear, all of that (pay rises) is on hold,” she said.

“We’ve got people out there who have lost their jobs, they’re hurting.

“We’ve got front line services out there, our nurses, our doctors our firefighters, our police, they’re doing a great job for Queenslanders.

Lines at the Centrelink in Southport. Picture: Jerad Williams

“But in this climate at the moment everything must be put on hold, it’s absolutely sensible, and I’m sure other people are doing the same thing.”

Her comments this morning came after Gold Coast business leaders admitted they were incredulous at hundreds of thousands of public servants and government workers being on the cusp of pay rises during the coronavirus slump.

It was revealed this morning that Queensland’s 224,000 public sector workers are in the midst of a ballot which started last week to approve a 2.5 per cent wage bump and one-off $1250 cash payment. The increases are in a proposed agreement between Annastacia Palaszczuk’s Queensland Government and public sector union Together Queensland.

Meanwhile, a new deal between government-owned Energy Queensland and unions means about 7300 workers for Energex and Ergon Energy will receive guaranteed annual pay increases for the next three years. They will also get additional employment security provisions and clarification of living-away-from-home meal allowance entitlements.

Gold Coast Turf Club chairman Brett Cook, also manager of Coastal Tipper for Hire, said small businesses had been forced to let go of thousands of staff: “This is just madness that members of the public service are getting a pay increase at a time like this.

“More than 300 people have been laid off from the turf club and many of them volunteered to take pay cuts while with my company, the staff all offered to take cuts too.

“They understand how hard the community is doing it right now while we have public servants with their hands out.”

Gold Coast Turf Club chairman Brett Cook. Photo: Richard Gosling

Gold Coast North Chamber of Commerce president Martin Brady said the pay rise was “not a good look” for the Palaszczuk Government, which has allowed bureaucrat numbers to balloon.

“The timing is very poor,” he said. “You would have thought this would have been put on the backburner.

“A lot of businesses are struggling right now and while the Federal Government will provide the $130 billion, $1500-a-fortnight wage subsidy there are lots of questions about how businesses will fund that in the mean time when they are in such a difficult position.”

Thousands of Gold Coast businesses have been forced to close or lay off staff due to tough government restrictions introduced to slow the virus spread.

Queensland Premier Annastacia Palaszczuk. (AAP Image/Darren England)

The move saw hundreds of newly unemployed people in lines outside Centrelink offices last week seeking government benefits.

A spokesman for Ms Palaszczuk last night said she would be “discussing” the public service pay negotiations with her Industrial Relations Minister this week.

“The enterprise negotiations started before virus and the unions are having a ballot of their members now,” the spokesman said.

Despite Federal Government’s announcement of $130 billion in wage subsidies this week, many businesses do not qualify and will be forced to shutter permanently.

The pay deals are higher than the Government’s 2.5 per cent wage policy, heavily criticised before the coronavirus pandemic for being well above inflation.

In a communique, Energy Queensland said the agreement was a “significant milestone and demonstrated a collaborative effort to “drive significant efficiencies within the business while providing certainty in employment terms and conditions for employees”.

Energy Minister Anthony Lynham last night said the Government had been advised of the deal two weeks ago but had not yet approved the pay rise.

“Things are moving and changing quickly, and the world is not the same as it was two weeks ago or before Christmas when this process began,” he said.

Dr Lynham said the Ergon and Energex workforces were critical to Queenslanders and the Government would continue to consult with them throughout the process.

Originally published as Coronavirus: Gold Coast business leaders slam public sector pay rise talks