It is not looking good for negotiations for the renewal of the teachers’ agreement in Victoria with the Premier backing away from a promise to make Victorian teachers the highest paid in Australia.

The Baillieu Government has now back flipped on a funding commitment in a pay equity case for workers in the community sector, stating that any unfunded increases would have to be paid for by reducing services and jobs.

In their submission, the Victorian Government has said the funding shortfall is consistent with maintaining a budget “operating surplus”.  The submission goes on to say:

“Depending upon the extent of any wage increase granted and the prospect that any increase in wages may not be fully funded by the Commonwealth Government, this may mean that there will be a “gap” between the rates of pay prescribed by FWA and the funding of the sector. This may result in a reduction in services. This, in turn, may have an impact on the numbers of positions in the sector, and / or on the hours of work available to workers employed in the sector.”

The Government’s own costings estimate the claim as at least $700 million, so this submission is effectively signing off on service cuts and job losses.