The purpose of this Circular is to advise you of progress in dealing with the Public Service Association's award application for a 20% pay increase in two instalments over 24 months for its members only.

An offer was made to the Association on 23 May 1997 and is summarised as follows:

it is for all employees covered by the Crown Employees (Public Sector Salaries 1995) Award;


the period of the proposed 1997 Crown Award is three years from 1 January 1997 to 31 December 1999; and


the proposal is for a total increase of 16%, including 7% to be supported by productivity savings.

The details of the offer are contained in the attached Heads of Agreement and Cooperative Negotiation Agenda.

Should the Association accept the offer, an award will be made by consent of the parties on 6 June 1997. Following the making of an award a pay circular will be issued and briefing sessions conduct for staff of your organisation responsible for implementing the decision.

In the meantime, I will organise a briefing for you on the offer.

C. Gellatly
Director General