Mr Perrottet stated the brand new cap struck a “truthful steadiness” because the unemployment fee pushed previous 7 per cent and personal sector wages stagnated.
He stated the brand new wages coverage would permit the federal government to maintain as many individuals in work as potential.
“I believe for those who have a look at our wages coverage right here in NSW, in comparison with anyplace else within the nation, it is utterly truthful and cheap and really beneficiant within the circumstances,” Mr Perrottet stated on Tuesday morning.
“I believe it is a very beneficiant coverage… We do not wish to have a two-tiered society right here, we’re all on this collectively.”
However the authorities’s choice was described as “financial idiocy” by Public Sector Union basic secretary Stewart Little, who stated Mr Perrottet was exhibiting contempt for employees.
“Essentially the most highly effective financial stimulus the Treasurer has is NSW’s personal workforce. They spend what they earn straight again into their communities,” Mr Little stated.
“The Treasurer has completely disrespected NSW public sector employees who stopped COVID-19 in its tracks.”
Unions NSW secretary Mark Morey stated he was outraged by the federal government’s choice, however dominated out industrial motion in the course of the pandemic.
“Within the present circumstances now we have an ongoing dedication each public sector employee has needed to make to retaining this economic system open, [that] it ticks over and the folks of NSW are secure,” Mr Morey stated.
“We’re not going to jeopardise that.”
Opposition Chief Jodi McKay stated Mr Perrottet’s choice was an act of financial vandalism and a betrayal of public sector employees.
“The Treasurer is selecting the pockets of employees to pay for his financial mismanagement,” Ms McKay stated.
Mr Perrottet stated the cap was based mostly off Treasury forecasts of inflation over the ahead estimates, however added he wished to get wages again to 2.5 per cent “as shortly as potential”.
Earlier this 12 months, the NSW authorities tried to implement a 12-month public sector wage freeze to save lots of about $three billion in the course of the coronavirus disaster.
That was blocked by the opposition within the state’s higher home, with the federal government then referring the matter to the NSW Industrial Relations Fee.
The fee dominated that wages needs to be capped at zero.three per cent for 12 months, ending 9 years of two.5 per cent pay will increase.
The choice by the economic umpire additionally emboldened the federal government to stroll again from the two.5 per cent cap after it dominated public sector employees didn’t have “entitlement to a specific wage improve”.
Tom Rabe is Transport Reporter with The Sydney Morning Herald.