CPSU members have rejected their latest pay offer.

The Community and Public Sector Union (CPSU) has announced that its members voted against the Australian Public Service Commission's (APSC) latest pay offer of 10.5 per cent over three years. 

In a ballot, 86 per cent of CPSU members rejected the offer, citing concerns about the failure to keep up with the rising cost of living and inflation, as well as the indexed increases in HECS debts.

The proposed offer included a 4 per cent increase in the first year, followed by 3.5 per cent in the second year, and 3 per cent in the third year. However, this fell well short of the 20 per cent rise that the CPSU had initially sought, which comprised 9 per cent, 6 per cent, and 5 per cent increases over the same period.

CPSU National Secretary Melissa Donnelly says the deal needs to acknowledge the challenges faced by APS employees over the past decade. 

“Our members have clearly communicated that a 10.5 percent pay offer achieves none of those goals,” she said. 

The CPSU's next course of action will be to lodge an application with the Fair Work Commission for a protected action ballot in Services Australia. 

If approved, CPSU members in Services Australia will have the option to vote on taking protected industrial action.

In response to the CPSU's initial claim of a 20 per cent pay increase, Finance and Public Service Minister Katy Gallagher described it as unfeasible given the current budget constraints. 

However, she expressed hope for a compromise, saying; “We are coming from different standpoints. Hopefully, we can meet in the middle”.