Amy:
My question is for the minister. Minister, with reference to the current EBA negotiations with teachers and nurses, given the current levels of inflation teachers and nurses will see their real pay remain unchanged or a cut in real terms. Has the department conducted any modelling on delivering teachers and nurses a real wage rise beyond inflation?

Context: teachers and nurses newly negotiated EBA provides a 4%, 4%, and 3% pay increase for the next three years, with one off bonus payment of up to 3% if inflation is greater than the negotiated increase. This means teachers and nurses will only get a pay rise if inflation is less than 4% (unlikely), and they will see a real pay cut if inflation is greater than 7% (most likely). The Federal Treasurer has announced inflation is expected to be 7.75% by the end of the year meaning teachers' and nurses' real pay will go backwards.


Minister for Industrial Relations:
I thank the member for the question. I think you have to take the whole agreements that have been done before where we were way above inflation and look at what occurred with the deferral and the 2.5 per cent. There were two payments of those. That was way above the one per cent and lesser one per cent. That was before, so we have had real wage increases for workers in the public sector for quite some time. If you look at the inflation rate and you look at the 4.6 per cent that was there, we think that the four per cent is definitely a reflection of that. We have locked in four per cent, four per cent and three per cent as the headline rates, but obviously with agency negotiations, member for South Brisbane, you also have a number of other components that are included in there such as attraction for regional and remote teachers. There are classification adjustments, there are a number of other elements and they are all funded and they are all priced as part of the package of entitlement that goes in that.

As well as that, we have to understand and recognise that we are the first government in Australia to do this. We are in challenging times when it comes to CPI. We really do not know where we are going to be in 12 months time. There will also be a recognition of that to keep pace with an adjustment of any inflation figure that is above the four per cent, which is extraordinarily generous and we are the first government in Australia to offer that to nurses and midwives and to teachers. They are out getting the views of their members at the moment. We think the package is excellent as well as that being separate. There are changes because of the changes to the superannuation guarantee levy where it has been increasing and the 12.75 per cent that is offered by the government. There have been arrangement changes with that to better reflect that increase. That is in addition to and outside of what has occurred in the EBA process.

We are very proud of it and we will look forward to reporting back from the members, but we want our workers to keep pace. We want to recognise them, but you just cannot take an isolated view. We need to look at where we have been, where we are going and what predictions are going forward. We think we have a package that is leading every state and territory at the moment in the country. They are striking all over the place compared to what we have been able to establish here. Unlike the previous LNP government that was unable to secure one agreement with one union, we are on the path to securing, in difficult times, a very good enterprise bargaining outcome for nurses, midwives and teachers. They are out getting the views of their members at the moment, but it does recognise those challenging times.


Amy:
Inflation in Queensland at the moment is at six per cent, so four per cent will not be keeping pace. Will that additional loading be going into the teachers’ base rate?


Minister for Industrial Relations:
The additional will be paid, in accordance with the agreement, as a lump sum based upon the difference between the rate of the CPI and the four per cent. It will be paid as a lump sum payment.


Amy:
If inflation exceeds seven per cent, will you be increasing that additional sum so that teachers are keeping pace with inflation?


Minister for Industrial Relations:
I take your point. It is challenging times. We have figured that seven per cent is at the absolute high end and we have locked in the maximum of three per cent to be paid as a lump sum in recognition of that possible seven. There has to be a ceiling somewhere. We do not have unlimited funds and that is what we have locked in.


Amy:
There is a potential that teachers will essentially see a pay cut?


Minister for Industrial Relations:
There is a potential that teachers could do very well depending on where we go during the life of this agreement. You just cannot take one year at a time.