NSW MPs block govt super regulation

CROSSBENCH MPs in the NSW upper house have sided with Labor to pass a motion aimed at putting more money in public sector workers' pockets.

The opposition's disallowance motion blocks a June regulation that allowed the government to count superannuation rises towards a promised 2.5 per cent wage increase for nurses, teachers and other public sector workers.

The motion passed 21-16 with the help of the Greens and Shooters and Fishers Party.

Treasurer Mike Baird, whose government wanted a compulsory 0.25 per cent super increase to be absorbed in pay rises, said the action on Wednesday would lead to job losses.

"If the current superannuation increase is not absorbed into the existing wages policy, the cost will be an extra $800 million over the forward estimates, which is the equivalent of 8000 public sector jobs," Mr Baird said.

"The former Labor government left this state in a fiscal hole and now it is attempting to do the same thing from beyond the grave - we will not allow this to happen."

Mr Baird said the government was keeping its options open in response to Labor's move, including legal action or requiring further savings by departments under the labour expense cap introduced in the 2012-13 budget.

Opposition industrial relations spokesman Adam Searle told AAP the government could not back up its $800 million figure and was now being forced to stick to a promise to public sector workers.

"They've been sprung," he said.

"They've now been forced to abide by their own original policy."

He said the motion passed in the Legislative Council would translate to a 0.23 per cent boost in wages for affected workers.

Unions NSW Secretary Mark Lennon slammed the treasurer for threatening to axe 8000 public sector workers.

"To try and deny public sector workers the modest commonwealth super increase in the first place is wrong," he said.

"But to then angrily threaten their jobs when his plan fails is, frankly, disgraceful."

Mr Lennon said axing thousands of jobs would leave the public with highly compromised services in hospitals, schools, police and fire stations.

"Mr Baird has completely lost his moral compass on this issue," he added.

Mr Lennon said the move had already been denied by the Industrial Relations Commission - "and now by the NSW parliament. He should take the hint."

Mr Lennon praised Labor, the Shooters and Fishers Party and the Greens for supporting the motion and "sticking up for decency".

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