CPSU, Australian Public Service Commission back at bargaining table as Services Australia industrial action kicks off

Minister for the Public Service Katy Gallagher and the commission declined to say whether the government would boost its offer of a 10.5 per cent pay rise over three years, as service-wide negotiations on pay and conditions continue.

The commission will meet with unions, agencies and staff again on Tuesday to discuss 18 common conditions for the federal public service. It is not due to discuss pay again until the August 24 meeting.

Members of the Community and Public Sector Union have rejected the 10.5 per cent offer, but the Public Service Minister has in turn dismissed the union's claim of a 20 per cent rise as "impossible".

"Whether there will be a revised pay offer is a matter subject to the bargaining process and government deliberation," a spokesperson for the Public Service Commission said.

"In the event the government decides to table a revised pay offer, advice will be shared with bargaining parties and APS employees at the appropriate time."

A revised offer would first need to be approved by the Expenditure Review Committee.

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"The Albanese government is committed to being a model employer and these negotiations with the public sector unions represent the first time in a decade that a federal government has been at the table and willing to engage in genuine enterprise bargaining," Senator Gallagher said.

"Negotiations are continuing and the Australian Public Service Commission aims to reach an agreement soon."

The union will push for a better deal by implementing a two-week ban on entering auxiliary codes in Services Australia call centres, used by management to track staff's tasks. It will impact management but have no impact on customers.

CPSU national secretary Melissa Donnelly said members would decide what they would accept from the government "at the appropriate time".

"Our message with this work ban is that we do want to see government improve its pay offer, and we hope, that the government takes heed of that message," she said.

"And that at the appropriate time, we see an improved pay offer both in terms of the headline but also the really important issue of pay equity."

Service-wide talks on pay and conditions are partly targeted at reversing the effects of decades of single-level agency bargaining, which has left smaller agencies behind. A model proposed by the commission to lift the salaries of the lowest paid APS staff is still too low, the CPSU says.

But members have not ruled out work stoppages, if the stalemate over pay continues to drag out.

Services Australia spokesperson Hank Jongen said the agency had prepared for the industrial action "and there will be no disruption to customers or payments".

"Staff will continue serving customers, answering calls and completing work as usual," he said.

"CPSU members participating in industrial action may choose to not use certain auxiliary codes. These codes allow managers to identify and report on what staff members are working on.

"While staff won't be using some activity codes in our internal system, they will still be answering phones and processing claims."

Reacting to the news of protected industrial action, Greens senator Barbara Pocock expressed her support for public servants "in their bid for higher pay, better rights, and more secure work", while Liberal senator Jane Hume urged the government to prioritise "the interests of the whole economy, not just vested interests".

"The Australian Public Service Commission's offer of a 10.5 per cent pay rise over three years is not enough to compensate for the rising cost of essentials or help attract and retain the talent we need to rebuild the public service," Senator Pocock, the Greens spokesperson for the public sector, said.

"The public sector has been hollowed out by successive governments.

"The pandemic and the government's overreliance on consultancies have taught us some harsh lessons about how important it is to have a highly competent, committed, and effective public service."

Senator Hume, the opposition spokesperson on the public service, called on the Albanese government to represent all Australians, not just unions.

"Australians have a world-class public service and we should continue to acknowledge that through sustainable wages growth," she said.

"However, Labor needs to be a government for all Australians, not just the union movement.

"We have already seen the warnings from economists and from the RBA that wages growth must be consistent with the inflation target and be accompanied by productivity increases.

"I encourage Minister Gallagher to consider public sector wages in the context of sustainable growth that prioritises the interests of the whole economy, not just vested interests."

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