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5 Market relativity and/or cost of living adjustment will not suffice as the sole basis for pay adjustment - specific business imperatives (such as improved performance and demonstrable recruitment and retention difficulties) are required.

6 The cost of all adjustments to pay and conditions, including built-in progression through pay scales, and performance-based pay increases, as well as any changes to other conditions such as leave entitlements, must be taken into account when setting the financial envelopes for both bargaining and remuneration strategies.

The MORE Everything Plan is closed to new accounts.

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3 Agencies must identify flow-on implications of settlements, both within and beyond the agency and sector, and have plans in place to manage these.

4 Pay structures and other conditions must be demonstrated as necessary to support an organisation’s business and workforce objectives.

Bargaining outcomes should deliver organisational and sector performance improvement, foster continuous improvement and productivity enhancement, support effective employee engagement and achieve results, as identified in the organisation’s and sector’s Budget Plan and Workforce Strategy (or equivalent).

2 Adjustments must be affordable and sustainable within baseline funding and should not lead wider labour market movements and trends.

All decisions about pay and employment conditions are expected to support this priority.

State sector agencies must meet the following criteria when adjusting pay and employment conditions, including through collective bargaining and remuneration adjustment processes: 1 Adjustments to pay and conditions must support achievement of the Government’s priorities for the State sector.Public Service Departments must have a bargaining strategy that meets these Expectations approved by the State Services Commissioner (the Commissioner), and must not commence bargaining or commit to an outcomes (including final Terms of Settlement) without this approval.Outcomes of Remuneration Forums and reviews should reflect these Expectations.This document sets out Government policy and expectations for all pay and employment conditions in the State sector.These Expectations apply to all State sector agencies except State Owned Enterprises.Boards of Crown entities will be required to have regard to these Expectations when establishing and adjusting their pay and employment conditions.

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