NEWS of the NSW Government’s imposition of a “pay freeze” has been met with dismay by Independent Education Union of Australia (IEU) members.

An IEU spokesperson said benchmarking of salaries, in any profession, is heavily influenced by public sector outcomes. IEU members will be directly impacted by the decision to freeze salaries in the public sector for 12 months.

"It is likely this freeze will be staggered. Agreements already signed off, should be delivered. The freeze will begin at the expiry of the current agreement," Pam Smith, assistant secretary of the IEUA NSW/ACT Branch said.

"In Catholic systemic schools, members are meeting and voting on action to help secure the overdue payments of 2.5 percent in both 2020 and 2021. From the NSW Government’s position, the freeze would take place in 2022 – effectively, it’s a pay cut set for 2022. This is what our state school colleagues can expect as well: pay parity and its consequent links to our sector is alive and well.

"It is unclear how the proposal will impact members in independent schools whose agreements expire in February 2021, but we anticipate an attempted freeze.

“Teachers, support staff and principals have served their communities with distinction in 2020," Ms Smith said. "To impose this freeze is an unreasonable response to a pandemic."

IEUA NSW/ACT Branch secretary Mark Northam said, “The extraordinary bushfire season and the coronavirus pandemic have impacted on heavily on schools. The glue holding communities together was the combined efforts of essential workers – our teachers and support staff. They made service provision possible.

“Schools stayed open and pivoted to online learning, with staff supporting students and families in all kinds of ways. They deserve immense respect,” Mr Northam said.

He said the NSW Government’s pay freeze was out of step with community expectations. It was also out of step with stimulus to enable spending.

"It is out of step with principles of sound economic management."

Economist Jim Stanford, director of the Centre for Future Work said, “This could turn a recession into a depression… Pay freezes are being imposed at the very moment when public sector workers such as healthcare workers, first responders, teachers and social service providers are performing vital tasks, at personal risk to themselves, to support Australians through the pandemic. 

"Freezing pay for these essential workers is not just morally questionable – it’s also a major economic mistake”.

Mr Northam said, “The Berejiklian Government must urgently reconsider its position and support essential workers, not thwart fair salary outcomes already constrained by its own legislation. The 2.5 percent cap on pay increases is the current NSW Government’s approach to negotiating industrial outcomes.

“To have yet another unnecessary legislated imposition is to unfairly constrain industrial outcomes.”

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AUSTRALIA’s peak industry representative body for innovation technology, the Australian Information Industry Association (AIIA), has  backed Prime Minister Scott Morrison’s economic roadmap to recovery.

In a speech delivered to the National Press Club this week, Prime Minister Morrison set out the recovery plan focusing on skills and training as a key target for reform in his JobMaker policy plan.

“We need Australians better trained for the jobs businesses are looking to create. It is that simple,” the Prime Minister said. 

The Prime Minister placed particular focus on digital technologies as one of the main pilots to grow - suggesting the need for a greater relationship between skills needed to fulfil a role in the workplace and education to meet this - with industries defining the qualifications needed.

Echoing the Prime Minister’s calls for greater focus on upskilling the workforce, the AIIA CEO, Ron Gauci said, “In order to protect jobs of the future there must be greater alignment with the digital industry.

"Re-skilling the IT workforce through investment, planning and greater education will not only benefit businesses and organisations requiring these services, but also encourage skilled jobs in Australia to flourish.

“I am encouraged by the Prime Minister’s plan for the labour market and the VET sector to support the economy post-COVID. As we begin to shift economic focus to rebooting and restoring our workforce, it’s important that we also allow for further investment and growth in our digital industries,” Mr Gauci said. 

AIIA agrees with comments previously made by Treasurer Frydenberg when speaking at an address to the National Press Club on May 5 over the need for a greater digital presence in the economy and the need to reskill those in the field.

“Reskilling those who may have lost their jobs, upskilling those in existing jobs to adapt to the enhanced digital and e-commerce environment and equipping those entering the workforce for the first time with the skills they need to get a job,” TMr Frydenberg said.

Digital technologies continue to be critical to the Australian economy and every level of business and government. During COVID-19, digital technology and its underlying infrastructure has supported the economy and will continue to be a crucial baseline for a successful modern Australian economy moving forward.

“The pandemic has also highlighted the need for sovereign capabilities in the digital supply chain. Australia must have the skills and innovation ecosystem to support a globally competitive economy as this step change into digital transformation occurs," Mr Gauci said.

“We are seeing current industry demand for digital skills around cyber security, cloud, applications development, AI, big data and analytics.” 

The AIIA is a not-for-profit organisation aimed at fuelling Australia’s future social and economic prosperity through technology innovation. 

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THE House of Representatives Committee on Tax and Revenue will be holding public hearings for its inquiry into the tax treatment of employee share schemes (ESS).

Chair of the Committee, Jason Falinski MP, said the Committee was interested to hear from a broad cross section of witnesses from government and the private sector about the operation of employee share schemes and the effectiveness of the tax laws surrounding them.

"In 2015 the Government made a number of changes to improve the taxation treatment and regulation of ESS," Mr Falinski said.

"This inquiry gives us the opportunity to understand why the use of ESS is still so incredibly low in Australia. It makes little sense. Giving employees, in both startups and established businesses, the opportunity to share in the growth of companies that they are helping build is a cornerstone of innovative economies around the world, like the United States and Israel.

"This is a unique opportunity for the Parliament to potentially transform the lives of a lot of good people," Mr Falinski said.

Further information about the inquiry is available on the Committee’s website.

Upcoming public hearings

Date: Thursday, 4 June 2020

Time: 9am to 1.30pm

Location: Committee Room 1R3, Parliament House, Canberra (via video/teleconference)

Date: Friday, 19 June 2020

Time: 9.30am to 3pm

Location: Committee Room 1R3, Parliament House, Canberra (via video/teleconference)

The hearings will be broadcast live at aph.gov.au/live.

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THE Indigenous Affairs Committee has launched an inquiry into food prices and food security in Remote Communities.

Committee chair Julian Leeser MP said, "it’s important that people in Indigenous communities have reliable access to food that is reasonably priced.

“There have been significant reports of very high food and grocery prices in Remote Communities and issues around the secure supply of fresh food,” Mr Leeser said.

“The inquiry will look at the situation in remote Indigenous communities, and the effect of supply chains and local businesses on the cost of food. The inquiry will also look at the role of regulators in dealing with the situation.

“I strongly encourage Indigenous people and people in the food and grocery industry to make a submission to the inquiry.”

The Committee will consult with communities, community stores and supply chain businesses, Government agencies and other stakeholders to determine Indigenous communities have access to reasonably priced healthy food.

The Committee will present its final report by October 30, 2020.

For more information about this inquiry, including its terms of reference, details of upcoming public hearings, and instructions on making a submission, please visit the Committee’s webpage. Track the Committee to receive email updates on the inquiry by clicking the blue ‘Track Committee’ button.

The Terms of Reference of the inquiry are:

The House of Representatives Standing Committee on Indigenous Affairs will inquire into and report on the issue of food prices and food security in remote Indigenous communities (“Remote Communities”).

The Inquiry will identify and report upon factors contributing to higher prices and situations where prices are considered unreasonable and in particular investigate whether there is price gouging in any remote community stores.

This investigation should pay particular attention to the availability and pricing of fresh and healthy foods in remote community stores.

The Inquiry will also consider licensing and regulation as well as the governance arrangements for remote community stores across Australia, and what action, if any, that the Australian Government and States and Territory governments could take to address price gouging in Remote Communities.

The Inquiry should consider, report and where appropriate make recommendations on:

1. The environment in which Remote Community retailers operate;

2. The licensing and regulation requirements and administration for Remote Community stores;

3. The governance arrangements for Remote Community stores;

4. Comparative pricing in other non-Indigenous remote communities and regional centres;

5. Barriers facing residents in Remote Communities from having reliable access to affordable fresh and healthy food, groceries and other essential supplies;

6. The availability and demand for locally produced food in Remote Communities;

7. The role of Australia’s food and grocery manufacturers and suppliers in ensuring adequate supply to Remote Communities, including:

a. identifying pathways towards greater cooperation in the sector to improve supply;

b. the volume of production needed for Remote Communities;

c. challenges presented by the wet season in Northern Australia as well as any locational disadvantages and transport infrastructure issues that might be relevant;

d. geographic distance from major centres;

8. The effectiveness of federal, state and territory consumer protection laws and regulators in:

a. supporting affordable food prices in Remote Communities particularly for essential fresh and healthy foods;

b. addressing instances of price gouging in Remote Communities; and

c. providing oversight and avenues for redress.

9. Any other relevant factors.

The committee will resume its inquiry into pathways and participation opportunities for Indigenous Australians in employment and business once this new inquiry is completed.

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