The Australian Financial Review (AFR) has highlighted the Public Service Association’s (PSA) dissatisfaction with the NSW Government’s generous severance pay for senior executives in the public sector.

“The Public Service Association’s threat represents an escalation of tension between unions and the Labor government” wrote AFR reporter Paul Karp in a story published in the 31 January hard copy of the right-leaning paper. “PSA general secretary Stewart Little told AFR Weekend existing provisions granting 8000 senior public servants 38 weeks’ pay if they are sacked after three months or more of service had ‘crippled’ efforts to cut back on ‘fat cats’ in the service.”

Mr Little was quoted in the story demanding that if the severance arrangements remain in place, Premier Chris Minns (pictured) should roll them out throughout the entire public sector.

“We’re going to put in a claim that all public servants should get 38 weeks’ redundancy pay after three months of service,” he was quoted. “That’s the standard set by the leadership of the public service.”

The PSA has pushed for a 15 per cent cut to what it describes as excessively high levels of senior executives, sparing the staff delivering services to the people of NSW from job losses. Recent figures from the State Government show that about 8 per cent of senior numbers have been cut.

The PSA believes the generous severance deal, implemented by the previous Coalition Government, is impeding the Government’s ability to reach the 15 per cent target.