NT Chief Minister Michael Gunner warns of public service job cuts after union rejects pay freeze

The Northern Territory Chief Minister has threatened to cut public sector jobs if its employees do not sign up to a wage freeze.

The government and public sector employees are at a stalemate after the public service union overwhelmingly rejected the government’s most recent wage policy offer.

Seventy-four per cent of employees who participated in a ballot last week voted against the government’s proposal of a four-year wage freeze with an annual taxable bonus of $1,000.

The public service is the Northern Territory’s largest employer.

“What our members have told us is that they can’t afford to have a pay freeze for four years,” the Community and Public Sector Union’s Kay Densley said.

“It’s just far too long. Inflation’s rising and costs are rising throughout the Territory and it’s just not fair to get them to accept that.

Today, Chief Minister Michael Gunner said the result meant the unions had “chosen the cuts path”.

“We’ve been very clear that if we get a wages policy outcome that’s not a cap, then that will come with cuts,” he said.

“I don’t think cuts are a good way through this. I don’t want to do cuts. That’s why we proposed the cut.”

The wage freeze and bonus were introduced in last year’s budget as a key measure to tackle the NT’s ongoing debt crisis. 

It was modelled on a recommendation in the government’s budget repair roadmap to cap wages growth at $1,000 per annum.

The government believes it will save $424 million over four years.

Mr Gunner today said unions needed to come forward with their plan for a wage rise and which jobs could be cut.

But Ms Densley said the union “hadn’t been in on these conversations” about the government’s proposal.

“We have said that if it was $1,000 cumulative up to two years then I think people would wear that — a lot of our members would wear that,” she said.

A cumulative increase would mean a $1,000 pay rise each year rather than the taxable bonus being offered.

Ms Densley disputed that the government would be forced to make cuts if the unions did not accept a wage freeze.

“We’ve put to him, previously, some alternatives,” she said.

“We think that he is just ignoring speaking to us and working something out in a collaborative way.”

The union said it would meet with the Commissioner for Public Employment soon to continue negotiations.