'Slap in the face': Illawarra public sector workers to join statewide industrial action on Wednesday

The NSW Public Sector Association (PSA) announced the 24-hour strike after Premier Dominic Perrottet flagged a three per cent wage boost for public sector workers over the next financial year, with another 3.5 per cent the following year depending on productivity gains.

He also announced a one-off, $3,000 cash payment for healthcare workers for their work during the COVID-19 pandemic.

PSA South East regional organiser Bart McKenzie called the proposed three per cent rise "a slap in the face" to public sector workers who kept society afloat during a challenging period.

Read more: 'A distraction': Wollongong nurses say $3k bonus won't fix broken hospitals

Unions believe the wage cap should be scrapped, or lifted to at least keep up with surging inflation, which stands at 5.1 per cent.

"With wages not keeping up with the rising cost of living, members have decided after all the hard work they've done through the bushfires, floods and the pandemic to take a stand and make sure they're listened to and understood," Mr McKenzie said.

Mr McKenzie said dozens of Illawarra public service workers including school support staff, child protection officers, police, National Parks and Wildlife Ranger and NSW State Emergency Service workers will join the industrial action.

Read more: 'Where are they going to get these additional health staff from?': Ryan Park

South Coast Labour Council (SCLC) secretary Arthur Rorris said the wage rise flagged by the premier is a pay cut in real terms amid high inflation and the rising cost of living.

"It's basic arithmetic really. Last year we had 3.8 per cent inflation rates and a 2.5 per cent wage cap for public sector workers," Mr Rorris said, who will join the PSA in solidarity on Wednesday.

"This year we have a 5.1 per cent inflation rate and the three per cent rise.

"In other words public sector workers will lose more money this year with the government's new offer than what they did last year.

"The government believes these workers will take whatever they can get, and the government has read them very, very wrong ... because there is a growing and seething anger amongst the entire public sector workforce."

Read more: Illawarra tradies slowed down by months of rain getting to work

The wage rise comes after several recent industrial actions and strikes from teachers, nurses, paramedics and other government workers over the last year.

The premier had forecast lifting the wage cap but warned it was unlikely to appease unions.

Treasurer Matt Kean said the increase in wages was fair and sustainable in the current economic climate.

He said unemployment was at its lowest on record and maintaining competitive wages would retain talent, while expected economic growth would pay for the increase.

Opposition Leader Chris Minns said the lifting of the wage cap was "better than nothing".

"We still believe the current system of bargaining between public sector workers and the NSW government is fundamentally broken," he said.

"This confrontational approach that prioritises lawyers fighting it over in the industrial courts is not the way to go."

Illawarra union members will gather at the Wollongong Train Station for a demonstration before joining the strike action at Hyde Park, Sydney where they will march to Parliament House.

To read more stories, download the Illawarra Mercury news app in the Apple Store or Google Play.