analysis
NSW Labor scrapping public sector wages cap has created headaches for the Minns government
Sydney rail commuters may be feeling the impact of the government's promise to deliver bigger pay rises to public sector workers. (ABC News: Jake Grant)
It was a promise that helped Labor get elected. But scrapping the public sector wages cap has created headaches for the Minns government — and by extension, Sydneysiders who rely on trains.
Chris Minns has narrowly avoided a shutdown of the city's train services after negotiating a two-week reprieve from strikes for a period of "intensive bargaining".
But the premier admits he may not get the deal done in the next fortnight, saying the "detailed work" is yet to come.
Premier Chris Minns was able to negotiate a two-week reprieve with the rail union. (ABC News: Nick Dole)
With the government setting a high bar for wage rises early on, it is no wonder the Rail, Tram and Bus Union (RTBU) is refusing to accept the government's offer of 11 per cent over three years (including super).
It reached a deal with the Health Services Union (HSU), awarding workers such as hospital cleaners a pay rise of up to 8.5 per cent in a single year.
Then there was the "once-in-a-generation" agreement to give public school teachers an immediate boost of up to 12 per cent.
Paramedics received a record increase of up to 29 per cent over four years.
Police have been offered a rise of up to 39 per cent over the same length of time, although the government says this has been offset entirely by savings within the force.
Paramedics are among the public sector workers that negotiated significant pay rises. (ABC News: Timothy Ailwood)
When questioned about Labor's handling of successive industrial disputes, Mr Minns directed blame at the former Coalition government.
"Members opposite shouldn't forget that during the previous term in office, the government of the time had a wages cap in New South Wales of 2.5 per cent," he told parliament this week.
But the fact is, it was once Labor policy to limit public sector wage rises.
Labor's Michael Costa served as treasurer from 2006 to 2008. When he was in office, public sector wage rises were capped at 2.5 per cent — plus any productivity gains.
Mr Costa told the ABC the O'Farrell government went on to legislate Labor's policy in 2011.
The NSW Treasurer Michael Costa has asked that the financial management of the Office of the DPP be investigated. (ABC News)
He said the genesis of the Minns government's industrial relations problems was its decision to do away with a base cap on wage rises.
"Whilst we didn't support it being legislated by the [O'Farrell] government because it was unnecessary, it was a rational basis for having equitable wage settlements," he said.
It should be noted that inflation was lower when Mr Costa was treasurer, hovering between 1.9 and 5 per cent.
When Labor was elected in March last year, inflation was running at 7 per cent. It has now fallen to 2.8 per cent.
The former treasurer said Labor's pre-election commitment to give teachers a significant pay rise, whilst understandable, was a "tactical error".
"Only an industrial relations novice would have thought that you could give a massive increase to the teachers without it flying through to the rest of the public service," Mr Costa said.
"This government has inherited a terrible fiscal position, which the Coalition tried to disguise with creative budget accounting. It's not in a position to give these wage increases, but the expectation is there."
The government is also locked in a stalemate with nurses and midwives, who have walked off the job a number of times in recent months as they fight for a 15 per cent pay rise.
The government is yet to reach a pay agreement with nurses and midwives. (ABC News: Timothy Ailwood)
The premier is adamant there is no more money for the rail workers and that any additional pay would need to be offset by savings.
But with the RTBU playing hardball, something will have to give if the government is to ward off the threat of strikes.
"Transport unions, they'll tell you, they're tough. They're very tough negotiators," Mr Minns said on Thursday.
"They've been doing it for a very long time. They know what they're doing."
As the busy lead-up to Christmas fast approaches, Sydney's train-travelling public is hoping the premier also knows what he is doing to keep the trains running.