SA Public Sector wage decline 'painful and extreme' despite record State economic growth, says new report

South Australian public sector wages have fallen dramatically in real terms – despite South Australia’s economy outperforming other Australian states, a new report from The Australia Institute reveals.

The report – entitled Economic Prosperity, Public Sector Restraint and commissioned by the Public Service Association of SA (PSA) – was released today. View and download the report here.

SA Government can well afford to pay a decent wage rise

The Economic Prosperity, Public Sector Restraint report supports what we have repeatedly told the government all year – that South Australian public servants are taking home far less income today than they did before the pandemic, for doing the same or more work.

The report also shows that historically low unemployment levels and better wages in the private sector are making the public sector less attractive as an employer.

The Australia Institute’s deep analysis of state government income and expenditure reveals a strong, stable economy.

However, strong economic growth has not translated into improved spending on public services and assets.

Data shows that state-level spending is smaller relative to the economy than any other state – proving that the state government can well afford to give its public sector workers a decent pay rise.

The state’s consistent economic performance generates strong revenue growth – with growth projected to continue in coming years and several indicators suggesting the government has untapped fiscal resources available to boost revenue further.

Report confirms that the Government’s “initial proposition”is highly insulting

The government’s “initial proposition” in the enterprise agreement negotiations – a wage rise of up to 3%, and then not until August 2025, is highly insulting – particularly in light of the government’s strong economic position.

PSA General Secretary, Natasha Brown told journalists at a media conference today the government must provide its public sector workers with wages that meet the cost of living and reflect the value of the work they do.

Natasha Brown said to the media:

“It is unconscionable that despite our strong economy and positive outlook from Treasury, public sector wages have gone backwards.

“The government must offer more competitive wages and conditions to attract and retain staff to keep our public service strong. If they do not, the problem will only get worse – and will become even harder to fix in the future.

“Declines in real wages among the public sector are contributing to significant financial stress in our members’ households.

“Some members are having to choose between paying their rent or mortgage and paying other bills. Others are working long hours of overtime to make up their wages – leaving them feeling exhausted, degraded and unvalued.”

“Our members serve all South Australians, often under very difficult circumstances, with staff in Health and other diverse agencies such as corrections, child protection, housing and the CFS regularly facing extremely challenging events in their day-to-day work,” she said.

“Public sector workers, who help keep us safe and make our lives comfortable, deserve wage justice – and they deserve it now.”“Amid a booming economy, our public sector workers have watched their wages go backwards in real terms by up to 10%, with lower-paid workers faring worst of all. This is shocking and completely unacceptable.”

“Despite helping to make South Australia one of the safest and most livable places in the world to be during the pandemic – South Australia’s public sector workers have experienced a severe decline in living standards and significant financial hardship. Achieving wage justice is our number one priority in the enterprise agreement negotiations that are currently underway.”

“South Australia experienced the strongest economic growth of any state after the pandemic – yet over the same period the wages of public sector workers have been steadily eroded by inflation and government wage restraint.”

“Keeping wages low is not the way to retain hard-working staff or attract workers to the public service. It undermines the essential services that the public sector provide, and means that the public suffer too as a result.”

“The state government can well afford to give its public sector a wage rise that redresses the current imbalance. It also has a moral responsibility to do so and the state’s economy will be stronger for it.”

“Strong wage growth will make the public sector more competitive, helping to attract and retain the best and brightest. This will lead to a stronger public service, a stronger economy, and a better state for all South Australians to enjoy.”

What next from here

PSA members around the state are uniting to secure a fair deal. Members’ position is clear - the PSA's priority for this agreement is to secure a wage outcome which addresses the cost of living crisis, while improving conditions to make working in the public sector competitive and attractive.

Members are encouraged to speak with your PSA Organisers and Worksite Representatives, and to attend meetings being held in your workplaces where you can:

• hear about the current status of the salaried Enterprise Agreement negotiations - understand where they are at and what it means for you

• gain insights into the terms and conditions being discussed

• discuss next steps

• discover how you can get involved and make a difference.

THE BEST OUTCOMES COME FROM STANDING UNITED

We all know that PSA members working together can improve outcomes for public sector workers and the community. You and your colleagues have the power to make a real difference. But we have to be in it together to make that difference.

Ask those yet to join you in the PSA to join online today  .