The purpose of this Circular is to advise of the agreement reached with the Public Service Association to pay a further 2% increase from January 1999 to employees covered by the Crown Employees (Public Sector Salaries June 1997) Award.

The basis of the agreement is contained in the Memorandum of Understanding dated 26 August 1998. This Memorandum provides for agency level and sector-wide initiatives. The sector-wide initiatives are:

• Procurement and Purchasing;
• Shared Service Arrangements;
• Information Technology;
• Travelling and Meal Allowances.

You will be aware that the earlier Memorandum dated 19 June 1998 also provided for negotiation on agency level issues as well as:

• Office Accommodation Workspace;
• Workers Compensation; and
• Relocation of Staff to Available Work.

The Memoranda provide an agreed basis with the Association by which agencies may undertake workplace reforms.

To assist agencies achieve the workplace reforms and savings a team comprising a representative from the Premier's Department, Corporate Services Reform project, Premier's Department, Employee Relations Division and The Treasury has been formed. Such assistance may be accessed by contacting either Dr Elizabeth- Coombs on telephone number (02) 9228 3096 or Ian Peters on telephone number (02) 9228 3530.

C Gellatly
Director-General

Issued by: Premier's Department
Contact: Dr Elizabeth Coombs or lan Peters
Telephone: (02) 9228 3096 or 02) 9228 3530
Date: 26 August 1998