Job cuts loom for public service in a move criticised as ‘budget lunacy’

The state government has been slammed for its “kneejerk” reaction to rein in state spending by axing 5000 public service jobs.

Victoria’s public sector union says the government should be looking at delaying some of its Big Build projects to find budget savings rather than pursuing public service job cuts.

Community and Public Sector Union state secretary Karen Batt on Wednesday slammed the government after revelations they were looking at a 10 per cent cut to the public service.

The Herald Sun previously revealed thousands of public servants are set to be axed under a tough new edict issued ahead of May’s state budget.

All government departments have been told to cut 10 per cent of ongoing staff, meaning more than 5000 workers are in the gun to lose their jobs.

The anticipated cuts would be the biggest in more than a decade – when former premier Ted Baillieu pushed to slash 3600 jobs.

Community and Public Services Union State Secretary Karen Batt.

But Ms Batt said it was worrying that some of these decisions were being made in secret, and they should back down and find other ways to prop up the state’s finances.

“The issues around the ability to deliver services, to deliver on their commitments, to deliver on programs that Victorians rely on requires people,” Ms Batt said.

“You can’t do things with a knee jerk response because you’ve got to have a budget bottom line that is different to what it’s currently standing.

“(The government should look at) a longer, more sustained process looking at how we delay certain things such as the Big Build.

Daniel Andrews is being urged to consider delaying some Big Build projects to find budget savings. Picture: David Crosling

“We could do a range of opportunities that would slow the impact of current economic settings, allow people to continue to have income and maintain the delivery of services without the loss of jobs.”

Assistant Treasurer Danny Pearson said no decisions had been finalised but flagged there were pressure’s on the state’s bottom line.

He denied that it was hypocritical to look at significant funding cuts for the departments after Labor slammed the Baillieu government for its public service cuts in 2011.

“Every budget is a discrete exercise,” Mr Pearson said.

“’It’s got to reflect the economic times in which we find ourselves.”

“We have to try and look at making sure that we can find ways in which we can balance the budget and work towards that end.

“We can look at trying to have a more efficient delivery of public services because at the end of the day, it’s taxpayers money and if we can do things more efficiently and more effectively now that’s something that we should be doing at all times.”

The anticipated cuts would be the biggest in more than a decade. Picture: David Crosling

Enraged senior public servants say the directive is a departure from standard practice.

But the government is hoping the move will save billions of dollars as it scrambles to rein in soaring spending.

Victorian Public Service Commission data shows the number of public servants increased from 34,000 to 55,000 (by 54 per cent) between 2015 and 2021.

And the government’s public sector wages bill ballooned from $24.2bn in the July 2014 to June 2015 financial year to $38.5bn in 2021-22.

It is understood the job cull will not apply to frontline service delivery roles, but there are fears cuts could have a major impact on key services.

Senior Andrews administration sources confirmed the planned cuts on Tuesday, though a spokesman said no final decisions had been made.

The Andrews government has issued the tough new edict ahead of May’s state budget. Picture: Getty

“The Government will consider advice from departments in due course,” he said.

Community and Public Sector Union state secretary Karen Batt said departments had been told to wind back staffing levels for each pay grade back to where they were five years ago.

“The 2018 funding model being imposed on departments by Treasury is an outdated arbitrary impost that doesn’t reflect reality nor the value of the work which has grown like Victoria’s population in the last five years,” Ms Batt said.

“Restricting staffing numbers by classification (paygrade) will cut staff and downgrade the services that can be delivered.

“The pattern is exacerbated by the obscene use of fixed term contracts which hits women workers the hardest and is an anathema to the Andrews government claims they wish to close the public service gender pay gap.

“Their behaviour towards their public service workers is extremely draconian when only last year they’d be lining up to congratulate staff for their bushfire flood and pandemic efforts.

“Labor is not Labor if they proceed to apply this budget lunacy and they’ll lose the courtesy of my silence.”

Premier Daniel Andrews has recently warned the budget will be unlike any his government has handed down.

The government is also hoping to find billions of dollars in savings through major cuts to community groups, outreach programs and not-for-profits.

When the Andrews government handed down its first budget in 2015, Victoria had just $22.3bn of debt, but it is on track for a record debt of $165.9bn by 2025-26.

Shadow treasurer Brad Rowswell said: “Jobs and essential services including schools, health, transport and community services will be impacted thanks to eight years of waste and mismanagement by the Andrews Labor Government.”