Vic public servants win pay increase

3 Jul 2012, 6:44 pm   -   Source: AAP

A protracted industrial dispute between the Victorian government and the public sector has ended with public servants winning a pay rise.

Victorian public servants have won a benchmark pay increase, according to the union, after striking a wages deal to end more than 12 months of negotiations.

About 36,000 workers covered by the Public Service Agreement will win 2.77 per cent average increases over four years, plus a one-off $1500 bonus, under an agreement made on Tuesday, the government said.

The deal is front-loaded to deliver a 4.5 per cent increase in the first 12 months.

Community and Public Sector Union (CPSU) state secretary Karen Batt said the bonus equated to 2.3 per cent of an average salary of $65,000.

The CPSU says the pay deal is a 15.5 per cent rise paid in seven instalments over three years and six months plus the $1500 lump sum payment.

"We've won a new benchmark in public sector wages," Ms Batt said.

"It shows the sham that the government's wages policy is."

Victoria's Finance Minister Robert Clark described the agreement as a win-win, saying it was in line with the government wages policy.

"The consideration that's uppermost is the effect on the budget," Mr Clark said.

"The way we have always calculated our wages policy is in terms of the impact on the budget, 2.5 per cent guideline rate plus productivity increases so we are very pleased with the outcome.

"This is consistent with our forward estimates."

Productivity savings were made around progression and leave arrangements.

The union was satisfied with the productivity offsets, according to Ms Batt, who said they were minor compared to what the government wanted.

"The government tried to strip away the progression entitlements for staff and we were able to fight that off in Friday, it was the last outstanding issue," she said.

Mr Clark said there were some legal and technical issues to be resolved but the agreement would be backdated to July 1.

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