21,000 Australian Taxation Office workers may take industrial action following a pay deal described as “miserly, low and unfair”.

ATO workers were told this week that they will be expected to work longer hours, give up conditions and entitlements for a pay increase of 2.4 per cent over the three-year life of the deal.

Staff will also have to put in an extra nine minutes each day and lose a $300 annual health and wellbeing allowance.

The deal is the latest in an extraordinarily drawn-out pay dispute, which sees workers earn less and less the longer it continues.

The Abbott government's Australian Public Service bargaining policy put a ban on back pay, so ATO wages have been frozen from June 2013 until a new deal is in place.

The terms were actually put forward by the Tax Office, but the Community and Public Sector Union says it was the result of harsh terms stipulated by Employment Minister Eric Abetz.
The CPSU says it will consult with members over the chance of strike action, but says initial feedback was “very negative”.

“The DHS and Department of Veterans Affairs have already voted to take industrial action,” CPSU national secretary Nadine Flood said.

“Minister Abetz needs to sit down and work through a path to sensible settlements if he is to avert more industrial action. If he doesn't change his bargaining policy then he risks more agencies joining the fray.”

Ms Flood says the current deal leaves staff worse off than before.

“Staff will be offered a 0.8 per cent per year pay increase for the next three years, but with working hours increased by 2 per cent,” Ms Flood said.

“Under this proposal part-time staff would actually see their take-home pay cut. This is the latest pack of nasties from Minister Abetz, who appears determined to lead the Federal government into a dispute with their 165,000 employees.”

As well as the cuts and constraints, the deal would make it easier for management to terminate employees, remove superannuation protections, place more staff on rostered shifts, remove obligation to report on outsourcing and contractors, and limit an employee's right to union representation, consultation and dispute settlement, Ms Flood said.