Each year the Government releases its expectations for pay setting in the state sector.  Fair enough. The government is trying to balance the books and they need to give an indication of the parameters of settlements that will work for them.  Its not just about wage rates. but can cover other areas such as productivity.  This year the Nats combined it with ditching two pay equity investigations and the common leave provisions that were going to make movement between agencies easier.  Each to their own!

This year the Nats document looked and sounded like a pay freeze. However, Tony Ryall actually tried to deny this in Parliament, noting that pay negotiations are the responsibility of Chief Executives. In the tertiary sector the law sets out that the Chief Executive of the institution makes the agreement and must consult the State Services Commission.

So you can imagine the surprise of three Polytechnic Chief Executive and Council Chairs who were dragged to Wellington to be told off by Tony Ryall and Anne Tolley for what they had either agreed or offered in pay settlements with their general staff.  In all cases the Polytechnics had found significant productivity gains, and had offered small pay increases (2-3%) to their staff, after consulting with the SSC.  What became clear in the discussions was that Mr Ryall had only a passing acquaintance with what he was appropriate for him to do under law and indeed the Cabinet Manual, and that he had in fact been aiming for a pay freeze.  Among other  things, I understand that the Polytechnics were told by Mr Ryall that pay increases in the 0% to 0.5% was what the government had been expecting.

Mr Ryall argues he was having appropriate discussions.  By law and convention he was having neither.  The government’s attitude in terms of polytechnics shows that nanny state is alive and well and roaming about the tertiary sector.  The government is moving to take control of Polytechnic councils (reducing them to 8 and having the power to appoint half, including the Chair) and now putting pressure on the Chief Executives to agree to their pay freeze. The Chief Executives are arguing that if they can find 5-8% productivity gains then a modest pay increase is appropriate.  The good news is so far the Polytechnics are sticking to their guns, but Mr Ryall needs to butt out.