The NSW government has reached an agreement with the Health Services Union (HSU) to increase wages and deliver benefits from salary packaging for more than 50,000 health workers across the state.
The agreement covers a range of professions including allied health roles, hospital cleaners, scientists, security officers, patient transport officers and more.
Under the government’s new Fair Pay and Bargaining Policy, the NSW government and the HSU have agreed to a one year pay increase of 3.5 per cent plus 0.5 per cent in superannuation.
The agreement will also provide 100 per cent salary packaging, delivering a key election commitment. This will increase the share of salary packaging benefits for eligible workers from 70 per cent to 100 per cent with effect from 1 July 2024.
Under current salary packaging arrangements, the resulting tax savings are split between health workers and NSW Health.
Cost of living protection has also been agreed with a $1,000, one-off cost of living payment if the 12-month annual average Sydney Consumer Price Index rate exceeds 4.0 per cent in the year to the March quarter of 2025.
The agreement also includes award reform that commits all parties to working together to create modern, fit for purpose awards. This includes a memorandum of understanding (MOU) that commits to working cooperatively to achieve a 3-year wage agreement on the expiry of the 1-year award.
Comprehensive plan
The Minns government says this deal forms part of the government’s comprehensive plan to deliver long-term repair of healthcare across NSW after 12 years of neglect and a lack of investment in the health system.
It follows a 4.5 per cent pay rise delivered last year, which was the highest in more than a decade.
Minister for Health Ryan Park said, ‘The NSW government is pleased to announce an agreement has been reached for a salary increase for more than 50,000 public health workers including Aboriginal Health Workers, dental officers, psychologists, security officers, patient support assistants, hospital cleaners, cooks, technicians, interpreters and administration staff.
‘The NSW government and the HSU have agreed to work together to identify system changes, productivity outcomes, benefits from award reform and savings. This has been a collaborative approach, which builds on the 4-year agreement reached with paramedics late last year.
‘The agreement delivers on a key election commitment to deliver 100 per cent salary packaging and abolish the wages cap.’
NSW Minister for Industrial Relations Sophie Cotsis said, ‘The Minns Labor Government continues the work of rebuilding the state’s essential services and the industrial relations system.
‘That work started with scrapping the Liberals and Nationals wages cap and introducing a new bargaining framework. We were elected on a mandate to fix the recruitment and retention crisis in essential services and that is what we are doing.’
Generational advance
HSU Secretary Gerard Hayes said, ‘This is a generational advance for 50,000 health workers who have earned every cent of this pay rise. The reform to salary packaging will be life-changing for hard working people on modest incomes.
‘Health workers deserve 100 per cent of their salary packaging tax benefits and this shows the strength of a union that stands together to get things done.
‘After years of neglect in a struggling workforce, we demanded the government do better and secured a deal that finally recognises health workers,’ said Mr Hayes.
‘We pay tribute to the government for honouring its commitment.’
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