Government revises Pay Expectations for State sector

The Minister of State Services, Mr Tony Ryall, today released updated Expectations for Pay and Employment Conditions in the State Sector.

On 24 May Cabinet agreed to a revision of Government’s Expectations to reflect the current economic climate and decisions announced in Budget 2010.

“While there are no fundamental changes to these updated Expectations, there is a stronger emphasis on reinforcing the critical link between decisions about pay and employment conditions, productivity and fiscal restraint and improved service delivery.

“Government’s priorities for the State sector continue to focus on improving service delivery, and demonstrating fiscal responsibility. I expect all decisions about pay and employment conditions to support these priorities, and that any decisions to increase employment costs are tied to service improvement.”

The Expectations are written within the context of a recovering, but still fragile economy with continuing uncertainty in the international economic environment. The fiscal situation for State sector agencies will remain constrained.

The key points are:
• Any changes to pay must contribute to the overall improvement of frontline services, be financially sustainable for the next 3-5 years, and be linked to improved productivity.
• State sector agencies are required to consult with the State Services Commission prior to and during wage bargaining and before committing to any remuneration increases.
• The Expectations apply to the Public Service, Crown entities and non Public Service Departments and include remuneration reviews and collective bargaining.

These Expectations update and replace the Government’s Expectations agreed by Cabinet in 2009. They will be revised from time to time, and they may be supplemented by additional specific expectations.

Link to Government Expectations for Pay and Employment in the State sector;

http://www.ssc.govt.nz/er

ENDS

© Scoop Media