Substantial disparity in pay, says P.S.A.

Press, 7 August 1985, Page 8

Substantial disparity in pay, says P.S.A.

PA Wellington Salaries and conditions in the Public Service had fallen so far behind the private sector that the Government was going to be “utterly embarrassed” by the size of adjustments necessary to bring wage equity, the Public Service Association’s president, Mr Colin Hicks, told its annual conference in Wellington yesterday. Mr Hicks said it would be expected that the Higher Salaries Commission determination next month would recognise a “substantial disparity.” “I expect a few hands will tremble in accepting such large back-dated salary hikes but those recipients should do so acknowledging that State salaries, not just the very highest, have been allowed to fall behind to extremely low levels,” he

said. The Public Service was in crisis, having “witnessed the highest turnover of staff and the greatest exodus of personnel in its history,” Mr Hicks said. The chronic problems would not be solved overnight but there were some immediate remedies — with money topping the list. Mr Hicks said the Labour Government had come to power with an economic policy which, had it been “put into practice would have been in the interests of our members and the wider community. “The fact that the Ministers of Finance have applied totally different mechanisms to steer the economy in a completely different direction means our members are among those who have had little choice but to bear the brunt of the economic load,” Mr Hicks said.

Taxes and prices had “drastically affected the living standards of our members.” Instead of “honouring their commitment” to maintain the purchasing power or value of pay packets as at July 14 last year the Government had “callously departed” from that undertaking, Mr Hicks said. The resources available to and the organisation of the Public Service had been allowed to run down over time. The Government Superannuation Fund deserved to be vigorously promoted. It needed better support and publicity and a favourable adjustment to the taxation laws. There was also a need for an immediate improvement in the provision of housing financing at concessionary rates of interest for State employees on transfer.