Unions ready for war with Premier Campbell Newman over fair pay
by: Koren Helbig and Robyn Ironside
From: The Courier-Mail
June 20, 2012
HARDLINE STANCE: Premier Campbell Newman says a range of union pay claims will make it harder for the Government to save public sector jobs now under threat.
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UNIONS are preparing to go to war against Campbell Newman over fair pay, with multiple industrial battles brewing following the Premier's hardline stance.
Teachers are set to rally outside State Parliament today, core public servants are threatening to strike and firefighters have lodged notice of industrial action from August 1.
But in a strong indication the State Government may ditch its election promise not to force redundancies, Mr Newman yesterday said Labor had hired 20,000 too many public servants and they could no longer be afforded.
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"We're not saying they're going to go, but when unions start to make pay cases and say they want more, well I'm afraid that makes it even harder to save those jobs," he said.
As the State Opposition accused the Government of throwing workers into uncertainty by muddling its job cuts figures, Queensland Council of Unions president John Battams warned slashing 20,000 public sector jobs would strip millions of dollars from already struggling regional economies.
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The Government this week angered core public service workers with a 2.2 per cent pay offer without incremental increases - its lowest deal yet.
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Together union secretary Alex Scott yesterday said its members would be better off not signing the agreement at all, saying they would effectively take a 1 to 2 per cent pay cut.
He said staff may take industrial action from August, while the United Firefighters' Union of Queensland has lodged notice of industrial action from August 1, angered by the proposed buyout of their allowances and overtime in return for a 2.7 per cent pay rise.
It came as some public servants set to lose their jobs on June 30 raised concerns huge chunks of their severance payments could be forfeited to the taxman because the State has refused to process payouts before July 1.
Thousands of Queensland bureaucrats employed for years on so-called "temporary contracts" are set for unemployment under a contract extension freeze.
Axed workers are entitled to two weeks' pay per year of service, capped at 52 weeks.
From July 1, federal tax changes mean workers whose overall income including payouts exceeds $180,000 will lose 45c of every dollar earned over that cap to the Commonwealth.
"Genuine redundancy" payments are excluded from the cap, so workers facing layoffs - such as Fairfax staff - would only pay tax rates of 15 per cent (for over-55s) or 30 per cent (for under-55s) on payouts of up to $175,000.
Their income would not be taken into account.
It is understood that expired contracts of Queensland's temporary employees would not be eligible for that exemption because their job losses are not considered redundancies.
Treasury was last night unable to say how many people would be affected or how much the payouts would cost the Government. One accountant, who is handling the finances of several public servants but did not wish to be named, said the Government was unfairly penalising workers by refusing to transfer cash before June 30.
"It's just lousy that they won't process the payments in double-quick time," he said.
Queensland nurses and midwives are also voting on a 3 per cent pay offer made before an interim audit report last Friday dramatically downgraded the state's financial position, but Nurses Union secretary Beth Mohle would not rule out future industrial action.
The Queensland Teachers Union is disputing a 2.7 per cent pay rise tied to changes in working conditions, which president Kevin Bates said "threatens the future of education in Queensland".