Tony Abbott has sought to remove another “barnacle” causing problems for the government, abandoning what was in effect a pay cut for Australian Defence Force personnel.
The prime minister announced on Wednesday the government would increase the defence pay deal from 1.5% a year to 2% a year.
The original deal, approved by a tribunal, attracted widespread criticism as a result of it being below inflation and thereby representing a pay cut in real terms.
Abbott said the new offer of 2% was “just above” the inflation rate of 1.7%. He said he was advised the change would cost $200m over four years but could be “accommodated out of efficiencies”.
The government has been struggling with its legislative agenda in the Senate, partly as a result of the independent senator Jacqui Lambie vowing to vote against all government bills unless it fixed the pay issue.
Lambie said on Wednesday she would spend the next week consulting Tasmanians and defence members before deciding whether to revoke her blanket ban on supporting government legislation.
But she suggested the pay rise was still inadequate, noting the early reaction from defence families was “pretty damaging for the Abbott government”.
Abbott said the decision to increase the pay for military personnel reflected the “special compact” between the Australian people and those who wore the defence uniform.
“It is appropriate that we do increase the offer from 1.5% to 2%,” he said. “It is just above the current inflation rate. It is still frugal government, if I may say so, but it is frugal government that acknowledges the special place that the defence forces have.”
Abbott said he respected Lambie’s position, saying the senator had a keen interest in the issue given her military background. He said what Lambie did was “a matter for her”, adding that members of his government had also raised “urgent concerns” about the pay issue.
The Defence Force Welfare Association wanted a slightly bigger rise, but said the new offer was “as fair as could be expected” given the budgetary environment.
Its national president, David Jamison, said: “We would have hoped for a bit more, but we’ve got to concede that 2% is fair.” .
“It will at least ensure that ADF pay won’t go backwards.”
The national secretary of the Community and Public Sector Union, Nadine Flood, said Abbott’s announcement was “a significant move from a prime minister under fire for his attacks on the real wages, rights and conditions of ADF personnel”.
Flood called on the government to reconsider its hardline stance in public sector wage negotiations.
“Offering our ADF 2% with no cuts to conditions isn’t exactly generous, but it is a mile ahead of the attack on rights and real wages on offer from this government to public sector workers,” she said.
“If the government can move for our ADF personnel, why don’t defence civilians and the public sector workers who protect our borders in customs, immigration and quarantine deserve more than a vicious attack on their rights and conditions? Why don’t the people on average wages in Centrelink and Medicare deserve some recognition for the tough job they do for our community?”
Liberal party critics of Abbott raised concern over the defence pay issue in the lead-up to the leadership spill motion in February.
