We need to talk about wage suppression

The Independent Education Union does not support salary outcomes in NSW of a meagre 0.3% increase. But this is what is emerging – and has already occurred.

The 2021 HSC Markers Award (a joint award with the NSW Teachers Federation and the National Tertiary Education Union) has been determined as deserving an increase of just 0.3%.

The NSW Government’s wage suppression strategy starts with public servants and will flow to the Catholic sector and in turn to the broader independent education sector.

Put simply, the NSW Government’s determination to drive down wages for public servants impacts teachers, support staff and principals in the non-government schools sector.

Catholic systemic school employers have long taken their cue from the NSW Government’s salary determinations for government school teachers. “Not a day before nor a cent more” has been the Catholic employers’ refrain since the 1990s. So NSW public sector salary outcomes translate directly into Catholic systemic teachers’ outcomes.

About 300,000 public sector employees including doctors, nurses, healthcare workers, paramedics and police officers constitute a substantial workforce. The ripple effect of wage suppression is considerable. Communities throughout NSW will be impacted.

NSW public sector workers due for pay rises after July 2020 are finding themselves in the 0.3% zone. This “austerity” campaign being waged by the NSW Government will have far-reaching consequences as the IEU continues – and enters into – negotiations with employers.

Hypothetical horror: What stagnant salaries would look like

The NSW Government’s wage suppression strategy starts with public servants and will flow to the Catholic sector and in turn to the broader independent education sector.

Notwithstanding drought, bushfires, the pandemic and floods, the NSW Government is determined to suppress wages. The way forward is to not constrain public sector outcomes.

“The key missing element of the recovery is wages growth,” ACTU Secretary Sally McManus has said. “It is now time for a pay rise so working people also benefit from the recovery and are able to drive spending and consumer confidence.”

The ACTU and the IEU reject increases of just 0.3%. Such an outcome is unpalatable for teachers, support staff and principals.