Thousands of firefighters would receive upfront payment and yearly pay increase under new deal

Victorian firefighters are set to benefit from a mega deal, despite the state desperately needing to rein in soaring debts.

UFU boss Peter Marshall is demanding trench rescue equipment be supplied to parts of regional Victoria as part of the negotiations. Picture: Aaron Francis

Victorian firefighters have been offered a whopping 12 per cent pay increase over four years and thousands of dollars in cash bonuses under a new wage deal.

It comes after the militant United Firefighters Union has demanded 25 per cent over three years and just two months after Victorian public service executives secured a 4 per cent pay rise and state MPs enjoyed a 3.5 per cent pay rise.

Under the mega deal, put to the union on Monday, 4500 firefighters would receive an upfront payment of about $7000 as well as guaranteed 3 per cent pay increases for each of the four years, despite the state desperately needing to rein in soaring debts.

Further annual cash bonuses of about $2000 per firefighter would also be included under the offer, which has been approved by the state government.

The militant United Firefighters Union demanded 25 per cent over three years. Picture: Josie Hayden

On Tuesday, Daniel Andrews said the offer was in line with the state’s wages policy.

“No doubt the union won’t be happy with that because they’d like to see the wages policy a lot higher,” he said.

“You’ve got to strike that balance between being absolutely respectful and grateful to our workforce no matter which sector they’re in, but also leaving enough money in the budget so we can employ more of them to lighten the workload.”

Mr Andrews said he believed the offer was “fair and reasonable”.

He said Fire Rescue Victoria would now consult with the United Firefighters Union after a lengthy bargaining process.

“We’ve been negotiating back and forth. This has been a long journey and I’m keen to resolve it and strike that balance,” he said.

“FRV are authorised to make an offer, they’ll make the offer and we’ll wait and see what the union says to that.

“I hope it’s considered seriously and favourably by the UFU and the firefighting workforce.”

Treasurer Tim Pallas in April doubled the cap on wage increases for public servants from 1.5 per cent a year to 3 per cent amid rampant inflation. Picture: David Geraghty

It comes after Treasurer Tim Pallas in April doubled the cap on wage increases for public servants from 1.5 per cent a year to 3 per cent amid rampant inflation, but despite a push to reduce government spending.

In June, senior Victorian public service executives won a 4 per cent pay rise, while state MPs had a 3.5 per cent pay rise.

The UFU has previously demanded an 8.6 per cent annual pay rise.

The deal would be conditional on references to the controversial Firefighters Registration Board being removed from the agreement, as well as changes to how future claims are arbitrated.

The UFU has been working to create a new registration board that would control who FRV could employ as operational members.

Under the plan, FRV would have to pay an annual fee of $180 to register a firefighter.

The union is also lobbying for a new allowance that would share $100m among firefighters from savings or efficiencies achieved in relation to the creation of FRV.

An application for the proposed new Efficiencies Allowances is before the Fair Work Commission and has identified savings of more than $127m, which the UFU is demanding should be shared among firefighters and other FRV staff.

It would mean payouts of about $28,000 if shared equally among FRV employees.

The FRV is fighting the application.

As part of negotiations UFU boss Peter Marshall has also demanded trench rescue equipment supplied to parts of regional Victoria who do not have the capability and have argued booming population growth outside Melbourne has added to their demands.