Tribunal increases wage rate for cost-of-living as rail deal approved

A Fair Work Commission bench decided in early March that NSW rail employees should receive an extra pay bump after long and fractious negotiations with the Perrottet Government.

Due to begin operation on Friday 17 February and nominally expire on May 1 next year, the Sydney Trains and NSW Trains agreement included increases of 2.53% for the first year (backdated to May 1 last year) and 3.03% in the second year, alongside a one-off $4500 top-up expected to be paid up front.

The FWC has decided to increase the original wage offer in the Sydney/NSW Trains EA by 1%. This means that members will receive a pay increase of 3.53% immediately, and back dated to 1 May last year, with a further increase of 4.03% taking effect in May 2023. The decision took into account cost of living increases, and largely ignored the Government’s public sector wage cap.

The EA deal was voted up by more than 9400 (93%) of 10,100 workers who took part in the ballot after the Government and Union in November agreed to the FWC arbitrating the remaining sticking points. The parties subsequently spent two days in February before a Full Bench of the FWC arguing over whether workers should in the current inflationary climate receive pay rises above the NSW Government wages cap

RTBU NSW Secretary Alex Claassens told members that the Government strongly held that rail workers were already paid enough, arguing that

“we shouldn’t receive any back pay for 2021/2022 because of the $4,500 one off payment”.

“Both the unions and the Government produced expert economic evidence about what the effect of the rising cost of living (CPI) has on our wages,” Mr Claassens said.

The agreement’s approval comes after what former Employment Relations Minister Damien Tudehope described as the RTBU’s “campaign of incredibly damaging industrial action”.

Prior to the FWC decision to increase the pay rate, Tudehope greeted news of the agreement being voted up as “meaning no further industrial action over the life of the EA , a welcome result for the public of NSW who own the rail network and rely on it every day to go about their lives”.

Transport Minister David Elliott hailed the deal as “a significant and successful outcome for rail employees and commuters, after more than 12 months of intense negotiations and impacts from industrial action”.

“This Enterprise Agreement represents an extremely generous and fair deal for employees,” the Minister said.

Among the new deal’s improved terms are increases or greater access to parental leave, bereavement leave and carer’s leave; stronger emphasis on managing physical and mental health in the workplace; and an increased focus on preventing sexual harassment and supporting employees experiencing family and Domestic Violence.