6.2 Public sector interim workplace arrangements
In October 2022, the Government released the Public Sector Interim Workplace Arrangements 2022, which replaces the Public Sector Workplace Relations Policy 2020 in its entirety. The interim arrangements are the first step towards a broader package of workplace relations reforms for the Commonwealth public sector. They are a short-term measure, designed to allow agencies to provide an equitable and timely remuneration increase to their employees.
The interim arrangements operate from 1 September 2022 until 31 August 2023. They apply to APS and non-APS Australian Government entities and members of parliament staff, subject to certain exceptions. Government Business Enterprises, the Australian National University, the Australian Broadcasting Corporation, the Special Broadcasting Service and the Reserve Bank of Australia are encouraged to apply the interim arrangements to the extent consistent with their commercial focus. The arrangements also apply to SES and equivalent employees.
The interim arrangements provide for a one-off annual remuneration increase of 3% for Commonwealth employees. Unlike previous workplace relations policies, this is not a cap or upper limit, but a fi ed percentage the Government has decided to pay employees. Pay increases will apply prospectively from the date any new instrument begins. Existing pay increases scheduled over the term of the interim arrangements are also to be increased to 3%.
Other key aspects of the interim arrangements are provisions to:
- provide maximum support and flexibility to employees affected by family and domestic violence
- promote workplace flexibility as a standard practice
- support genuine and effective consultation with employees and their representatives
- facilitate union representation in Commonwealth agencies.
The interim arrangements were supported by the parallel release of APSC circulars on Genuine and Effective Employee and Union Consultation in Commonwealth Agencies and Union Representation in Commonwealth Agencies. These circulars were designed to reflect the new Government’s approach to workplace relations, including a desire for improved collaboration and consultation with union stakeholders. They set the expectation for Commonwealth agencies to act as model employers in these matters.
Agencies are encouraged to consider making a one-year determination to provide employees with certainty and a timely wage increase while details of the Government’s new comprehensive workplace relations policy are being developed. Under the interim arrangements, changes to terms and conditions are only approved in exceptional circumstances. This is to minimise the impact on future Commonwealth bargaining, which will aim to improve commonality of conditions across Commonwealth agencies.