Gladys Berejiklian has criticised a plan to scrap a 2.5 per cent cap on wages growth for the state's public servants nswvotes
In 2011 the Coalition government introduced the 2.5 per cent cap on annual public sector wage increases, with higher increments only possible if they are offset by productivity savings.
The research paper by economists Troy Henderson and Jim Stanford from the Centre for Future Work shows that wages growth in NSW between 2005 and 2011 was consistently around the 4 per cent mark but then fell to below the 2.5 per cent level after the wages cap was enforced.“Within two years of the NSW state government imposing a cap of 2.
"It is the height of recklessness, at a time when we have a softening property market, to be scrapping a policy that has maintained budget surpluses here in our state," he said.
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