You will be aware that the Public Service Association has been advised that the information currently available to Premier's Department indicates that the savings have not been achieved to enable the Crown Employees (Public Sector Salaries 1997) Award to be varied to provide for the two 2% increases from July 1998 and January 1999.

In light of the current negotiations Premier's Department is undertaking with the Association, urgent advice is sought by close of business on Tuesday 26 May 1998 on your organisations capacity to pay an additional 2% increase from July 1998 to staff covered by the Crown Employees (Public Sector Salaries 1997) Award. The advice should be provided by facsimile to Ian Peters on (02) 9228 4420 using the attached form.

As you are aware, the Award provides for funded increases of 3% from July 1998 and January 1999. The additional 2% from July 1998 referred to above would be funded from:

1. Corporate services and other savings identified by reviews of the Office of the Council on the Cost of Government which can be attributed to groups covered by the Award - not program savings.
2. Other savings from initiatives under the Co-operative Negotiation Agenda to the Award. For instance, the Crown Employees (Public Service Conditions of Employment 1997) Award was amended in relation to travelling allowances to facilitate savings to organisations.
3. Savings generated through enterprise industrial instruments with the Public Service Association. To date there have been 52 such instruments covering approximately 18,500 employees.
4. Other initiatives available at the organisation level which generate savings without a reduction in service delivery and which can be attributed to groups covered by the Award

The savings must be fully self contained and not require Treasury support e.g. voluntary redundancy payments.

The Heads of Agreement to the Award supports the payment of the 2% from July 1998 on the basis of the savings being available.

Further assistance is available from the Corporate Services Reform Unit, Premier's Department to enable your organisation to achieve the savings identified. Contact may be made with Dr Elizabeth Coombs on (02) 9228 3096 to secure this assistance.

Any enquiries on the Award may be directed to Ian Peters, Director, Employee Relations on telephone number (02) 9228 3530.

C Gellatly
Director-General