The CPSU is set to escalate its industrial action across various public sector agencies. 

The planned move comes in response to a government pay offer of 11.2 per cent over three years, which garnered only 51.9 per cent support from union members in a voluntary poll with approximately 15,000 participants.

This close result poses challenges for both the Australian Public Service Commission (APSC), representing the government in negotiations, and the Albanese government itself. Despite offering flexible workplace conditions, including remote work options, the government failed to satisfy the Community and Public Sector Union (CPSU) demand for a 20 per cent pay increase over three years.

“The first round of service-wide bargaining is a unique opportunity to make significant progress for APS employees. However, the current offer, which has lukewarm support at best, falls short of achieving that goal,” the unions says. 

Public Service Minister Katy Gallagher, on the other hand, has expressed optimism about the outcome, saying, “I welcome the outcome of the CPSU ballot which shows a majority decision to support the government’s fair pay offer that was increased following negotiations. We have bargained in good faith and worked hard to improve wages and conditions for public servants after a decade of neglect under the former government”.

Smaller APS unions have aligned with the CPSU's stance, with the Australian Services Union's Taxation Officers' Branch asserting that the government's proposal does not meet their members' needs.

One of the central concerns for public servants, especially in Canberra, is the city's high cost of living, tight housing market, and rising interest rates, which have made the 11.2 per cent offer over three years seem inadequate. 

This disparity becomes more glaring when compared to the higher pay rises granted to public sector employees in states like NSW.

Notably, the CPSU's leadership refrained from officially endorsing or opposing the offer during the poll, a tactic that drew mixed reactions within the union. 

Nonetheless, CPSU National Secretary Melissa Donnelly argued that the government's current pay offer lacks decisive support among employees.

“In an environment where every APS worker is feeling extreme cost of living pressures, the current pay offer just doesn’t cut it. The Government can and should do better – and that means making an offer that has clear support from employees,” Donnelly said.

However, the challenge lies in extracting a favourable deal, given the limited political influence of the Australian Capital Territory, which has only two senators.

While Minister Gallagher advocates for restoring the APS's strength by insourcing services, labour shortages and competition with the private sector have complicated this effort. 

The pay gap between critical public sector roles and the general market, particularly in fields like tech development, engineering, and tax expertise, has hampered recruitment.

To address labour shortages, flexible work arrangements have been proposed, aiming to reduce dependence on the Canberra job market. 

Yet, the CPSU's approval of a pay offer remains a prerequisite for this solution, leaving the government in a dilemma: to persist with negotiations or swiftly reach an agreement.