Public servants in the ACT will be encouraged to vote down the government's proposed pay deal after a majority of Community and Public Sector Union members voted to reject the latest offer.

Government workers were last week presented with an updated deal that included inflation-linked top-up payments in the second and third year of the proposed three-year deal.

But 66 per cent of CPSU members who voted in a union-run survey wanted to reject the deal, which kept the core pay increases at 3 per cent a year over three years.

Maddy Northam, the union's ACT regional secretary, said the government risked highly skilled professionals in the health system leaving the territory for greener pastures if the offer did not improve.

"Members have been clear that they will not tolerate another three years of below inflation pay increases that send their families backwards. Public servants still have to put food on the table and pay the rent," Ms Northam said.

"This offer isn't up to scratch. Members will now be running a vote no campaign and encouraging the government to improve their offer."

The Australian Education Union, which represents staff in public schools, last week said the deal was "cynical" and an "absolute shocker" and that low-paid staff especially needed cost-of-living support now.

The latest annual inflation figures for the ACT show consumer prices rose 4.1 per cent to May, but the government's own forecasts of easing inflation show they do not expect to have to pay the cost-of-living payments to public sector workers.

If Canberra's annual inflation hits 3.5 per cent in the second and third years of the deal, government workers would receive a $600 cost-of-living payment.

If inflation hits 4 per cent, workers would receive $1000.

Public Service Minister Rachel Stephen-Smith last week said the updated offer sought to recognise public servants' work while balancing the challenging fiscal environment the ACT faced.

"The package delivers a sustainable and competitive outcome for employees and the broader ACT community and maintains the ACT Public Service as one of the country's highest-paid public sector workforces," Ms Stephen-Smith said.

"This package reflects feedback from employees following the March offer by adding an additional one-off cost-of-living payment each year if annual inflation is higher than expected. This recognises ongoing uncertainty in the global and national economy."

All bus drivers will attend a meeting convened by the Transport Workers Union on Thursday to discuss the enterprise bargaining agreement, meaning public bus services will not operate between 9.30am and 1.30pm and limited services will run immediately before and after the meeting.

First published in The Canberra Times on July 28 2026 as Union will urge ACT public servants to vote against ACT govt pay offer by Jasper Lindell
Licensed by C©PYRIGHTAGENCY. You must not copy this work without permission.
Image credits: Karleen Minney
+612 9394 7600 copyright.com.au