Civil service pay agreement could come at a price

Fri, 16 Mar 2012

A pay agreement has been reached for Civil Servants but it's warned it could come at a price.

Workers will get a 1.2% increase for the year 2011/2012.

Chairman of the Civil Service Commission Alf Cannan says following negotiations, a settlement has been agreed at a manageable level but it will impose an additional burden on government.

He warns there's a clear risk the award will result in the need for staff reductions.

Mr Cannan says the deal may not be universally welcomed, but it's preferable to secure agreement through negotiation, rather than allow the matter to go to independent arbitration.