Canberra, 16 May 1967
Papua and New Guinea-Arbitrator’s decision on the local officers’ salaries case
A. Background to case
• Government’s decision in 1962 to reconstruct Public Service to provide framework for completely indigenous Public Service within capacity of local economy to sustain.
• Reconstruction implemented in September 1964 involved establishment of salary levels for local members appropriate to Territory, not Australian standards. World Bank report supported this action.
• True that expectations of {some} local officers were diminished as previously [they] had been paid Australian rates.
• Not true that any local officers suffered any reduction in rates of pay. Special non-reduction allowances paid to preserve existing levels of salaries for serving officers.
• Government had expected that subsequent reviews of levels of salaries would be necessary but had considered that 1964 salary levels should apply for reasonable trial period.
B. Arbitration case-claim and hearings
• Always open for the Public Service Association to have salary levels tested through Arbitration process.
• Association decided to go to Arbitration, and filed memorial in April 1965.
• Association’s case commenced 26-10-1965 and completed exactly one year later.
• Association introduced 114 witnesses.
• Administration’s case commenced 28-11-66 and concluded 8-2-67. Administration introduced 6 witnesses.
• Case concluded 17-2-67. Transcript recorded totalled 3,700 pages.2
• Exhaustive hearing covered all aspects enabling Arbitrator to be fully informed and to form opinion as basis for independent and impartial decision as required under provisions of Arbitration (Public Service) Ordinance.
C. Arbitration case-Arbitrator’s Decision
In his Decision, handed down last Thursday,3 Arbitrator
- confirmed that local salary levels should be related to local economy and standards;
- rejected Association’s claim that there should be a direct relationship between Territory and Australian wage structures for local officers;
- commended Administration on significant adjustments made by the Administration last July during course of the hearing;
- granted increases ranging from 9% at bottom to 14% at middle and 11% at top of structure, to take effect from first pay period in July, 1967;
- {amounts of increases ranged from $40 at bottom to $250 at middle level and up to $600 at top levels.}
D. Cost of local officers’ salaries
- Reconstruction of Public Service and conversion of local officers to full cash wage in 1964 cost approx. $2.4 million;
- new salary rates introduced by Administration in July 1966 had immediate additional cost impact of $450,000;
- budgetary provision for salaries of local officers in 1966/67 financial year was $9.7;4
- cost of increases granted by the Arbitrator roughly estimated to approach $700,000 (new salary {scale} to be worked out) {in 1967/68};
E. Effects of Decision throughout Administration
- Wage levels of Police Warders and local employees of Commonwealth Departments and Authorities in the Territory will be affected. This will add further to salaries bill;
- {Increasing economic development is the appropriate way of providing an economic basis for higher salaries for local officers.}
[NAA: A452, 1967/3032]
1 Appearing on the original are the initials of Ballard and Max Joliffe (Senior Inspector, Terms and Conditions Section, DOT) and a stamp indicating that the document was sent to the Minister’s office, but author and recipient are not formally denoted.
2 For changes made to the wage structure during presentation of the Administration case—and for reactions to these modifications—see Document 56.
3 11 May.
4 Apparently, the word ‘million’ is missing here.