Pay rise of 20 p.c. for State servants

Press, 24 December 1985, Page 3

Pay rise of 20 p.c. for State servants

Wellington reporter Most State servants can expert pay increases of at least 20 per cent after an agreement with the Government on relativities with the private sector. Those increases will reflect the agreement on margins between State and private sectors, announced yesterday, combined with the 15.5 per cent basic rise settled earlier. Announcing the margins agreement yesterday, the Minister of State Services, Mr Rodger, and the chairman of the Combined State Unions, Mr Colin Hicks, said both increases would be backdated to November 10. The margins agreement is

the first since 1977 and Mr Hicks said time would tell whether it was sufficient to stem the loss of skilled State employees to private sector jobs and improve recruitment

He said further negotiations would now follow for groups of State workers who choose to pursue their own claims rather than accept the margins agreement. The agreement is a complex package affecting the pay of different groups in different ways.

One element is a review of margins at upper management levels not covered by the Higher Salaries Commission but influenced by its determination for politi-

cians and top State officials in September. Mr Hicks said this would mean State servants now on salaries over >32,000 would get pay rises comparable to those in the determination, which averaged about 23.5 per cent He said for State servants below that salary level, the effect of the margins agreement and the basic increase would be pay rises of 20 to 21 per cent Other elements in. the package include provision to f ‘correct” State pay rates which have moved by less than private . sector rates since the wage freeze.

Adjustments will be made for margins of skill and

responsibility in some classes, while changes will be made. to starting rates and progression arrangements for staff, on basic grade scales. ’ The package includes also a restructuring of the salary scale for employees in the executive and clerical group. This is intended to produce a more rational and consistent scale with standard margins between steps or grades. Messrs Rodger and Hicks said the agreement provided for further discussions over the next year on the prin-ciple-of performance payments for upper management staff* in the State services.