Media Release

3 November 2020

Labor has slammed the NSW Liberal Government’s decision to cut workers’ wages for a second time, after Treasurer Dominic Perrottet announced today that he would cut the public sector wage cap from 2.5% to 1.5% from next year

The Treasurer refused to consult with workers and their unions and instead announced a wage cut for workers across NSW on Melbourne Cup Day and on the eve of the US presidential election.

This morning, 400,000 workers across NSW woke up to media reports that the NSW Government plans to cut their wages in the midst of the most serious economic crisis since the Great Depression.

Labor’s Deputy Leader, Yasmin Catley said: “Workers in every city, every region and country town in NSW have woken up to this slap in the face from the Liberal Treasurer.”

The economic consequences of this decision will be felt for years to come, and comes at the worst possible time for the state, facing the daunting task of a post-COVID economic recovery.

“Removing this money from circulation in our local economies will have a devastating flow-on effect that will be felt in every town and down high street,” Ms Catley said.

“The best way to stimulate the economy is to get people spending again, and all this will do is make more people tighten their belts for longer. It is contrary to all good economic sense,” she added.

Shadow Minister for Industrial Relations Adam Searle said: “It is clear this has been Dominic Perrottet’s plan all along and he has snuck it out on Melbourne Cup Day and on the eve of the US presidential election.

“This is an insult to every single worker who kept our society going during COVID-19. The teachers, nurses, and hospital cleaners on the frontline of the pandemic, along with the transport and administrative workers who kept the state moving deserve better than this” — Adam Searle MLC, Shadow Minister for Industrial Relations