Govt departments to receive no extra funds to pay for $10,000 in bonuses for every public servant

Public sentiment shows low support for a proposed EBA giving public servants $10k in exchange for a four-year pay freeze. What do you think? VOTE IN OUR POLL

TWO unions have accused the NT government of trying to “bribe” public servants with a $10,000 bonus in exchange for a four-year pay freeze.

Both the Community and Public Sector Union and the United Workers Union have slammed the sweetener announced as part of a protracted enterprise bargaining process for the public service.

A snap poll held by the Community and Public Sector Union (CPSU) shows just 12.5 per cent of its members support the EBA offer. Over 80 per cent wanted wages to increase permanently by $1000 or to rise by a percentage.

CPSU NT secretary Kay Densley said the negotiation tactics taken by the government were “not genuine bargaining”.

“Backed into a corner, the government has landed on a bargaining position somewhere between a bribe and a threat,” Ms Densley said.

“There is still no pay rise – in four years’ time your base salary will be exactly where it is today.”

Community and Public Sector Union NT secretary Kay Densley has called the negotiation tactics ‘between a bribe and a threat’. Picture: Justin Kennedy

A government spokesman rejected the CPSU’s findings, saying the poll compared Mr Gunner’s offer to a second hypothetical option.

In a letter penned by United Workers Union secretary Erina Early, sent to Public Employment Commissioner Vicki Telfer, Ms Early said members were deeply concerned about wages falling behind the rapidly rising cost of living in NT.

Ms Early said public servants were still largely against the lump-sum bonus, despite Mr Gunner increasing it from $1000 to $4000 in the first year and $2000 for each year after.

“The feedback from my members (received in this limited period), public service employees feel disconcerted, viewing the shift as an attempt to bribe them,” Ms Early wrote.

“A four-year wage freeze even with a cash grab imposes lasting costs on affected workers that can easily add to hundreds of thousands of dollars.”

Ms Early said paying the $10,000 in bonuses out over four years, and as lump sum payments, had “knock-on effects” to future wage increases, superannuation contributions, overtime, allowances and leave entitlements.

Chief Minister Michael Gunner has pushed back on the unions, saying higher wages would result in job losses in the public sector. Picture: Amanda Parkinson

In response, Chief Minister Michael Gunner said the government could only bow to union demands by cutting jobs.

Mr Gunner also challenged unions to identify which positions would be cut if wages were to increase.

“If the unions propose an alternative that is more expensive than this, then the only way to pay for it will be with job cuts – and I would expect them to include in any proposal, what jobs they think could be cut to pay for it.”

The payments, originally $1000 to each public servants, were boosted to $4000 after 364 government employees lost their jobs for refusing to get their first dose of the Covid-19 vaccine. The government said the job losses will save $120m over four years.

The NT News revealed on Wednesday that government departments would need to find the money to pay the $10,000 in bonuses from their existing budgets, with Treasury providing no extra money for the enterprise bargaining sweetener.

EARLIER: GOVERNMENT departments won’t be given an extra dime to pay each of their public servants $10,000 in bonuses over the next four years.

Under a sweetener offered by Chief Minister Michael Gunner, each public servant would receive a $4000 bonus in the first year of a new EBA, and $2000 annually thereafter, in exchange for a four-year pay freeze.

Mr Gunner has also promised to fill any frontline roles vacated by the vaccine mandate, meaning chief executives need to hire new workers and find money to pay bonuses for existing staff.

Mr Gunner upped his original $1000 bonus after 364 of the Territory’s 24,612 public servants were sacked for refusing their first dose of the Covid-19 vaccine.

The improved bonus offer would cost the Education Department $33.19m over four years. The modelling suggests there would be no increase in teacher numbers over the four years of the enterprise agreement.

Chief Minister Michael Gunner announced the extra bonuses after almost 400 workers left the public service for refusing to be vaccinated. Picture: Amanda Parkinson

Correspondence between the Australian Education Union (AEU) and Public Employment Commissioner Vicki Telfer, obtained by the NT News, has revealed departmental chief executives have been tasked with balancing the books. Ms Telfer said “agency budgets are not being supplemented for this or the previous offer”.

“CEOs are aware of this and will manage the outcomes to ensure programs and services such as education to students are not adversely impacted,” she said. AEU NT branch president Jarvis Ryan said he was concerned the Education Department, and other government departments, would need to cut staff or services to fund the bonuses.

“There’s no increase in funding for 2024, so this offer will come at the expense of teacher numbers or schools having to cut their budgets to fund this so-called bonus,” Mr Jarvis said.

AEU NT branch president Jarvis Ryan expressed concerns about whether Education could hire all teachers back and also pay bonuses. Picture: Che Chorley

He also raised concerns that the Education Department would not be able to fill the 45 teacher vacancies caused by the mandate while paying each employee $4000 more. An NT government spokesman said all essential positions that had been vacated by the mandate would be replaced. Non-essential staff who left from the mandate would not be replaced, meaning a net loss of 300 employees. “The savings made through reduced staffing numbers will cover the increased offer,” he said. “Because our vaccination rate is so high, there are no impacts to service delivery expected from these people leaving their employment.”

Originally published as Govt departments to receive no extra funds to pay for $10,000 in bonuses for every public servant