Rail workers in Sydney will receive an extra one per cent yearly increase in their pay after the Fair Work Commission handed down its decision in a long-running wages dispute.
The commission's ruling means workers will receive an additional one per cent pay increase on top of the existing offer made by the state government when negotiations for a new enterprise agreement began in May 2021.
The disagreements over the rate of pay increases led to prolonged industrial action affecting NSW trains, culminating in a network-wide shutdown in February last year.
The rail unions lodged the first of several applications with the commission back in September after failing to reach agreement with the government.
The commission ruled that the initial one per cent wage increase will be applied from May 2022, with another one per cent increase applied from May 2023.
Unions NSW secretary Mark Morey said the decision has blown a hole in the government's wages policy.
"This is a momentous decision that delivers significantly higher pay than the NSW government intended. The credibility of its pay policy is in tatters."
Unions NSW said Sydney train employees will now receive a pay rise of 3.53 per cent from 2022, with back pay to be paid out, and an increase of 4.03 per cent from 2023.
They will also get a one-off payment of $4500.
Mr Morey said the rise in the cost of living is seeing people struggle with things like surging rents and sky-high mortgage repayments, and the extra one per cent a year will make a significant difference.
"For many it will be the difference between paying for school excursions or a modest summer holiday."
