ACT public servants to strike as pay negotiations with government reach deadlock

ACT public servants are set to walk off the job after pay negotiations with the territory government stalled, with Housing ACT staff planning a one-hour strike on Thursday, May 14, following overwhelming support for protected industrial action, as reported by miragenews.

The industrial action comes after months of bargaining between the ACT government and the Community and Public Service Union (CPSU), covering workers across health, housing and administration. More than 95% of CPSU members who participated in a ballot on May 7 voted in favour of protected industrial action as frustration mounted over wage proposals that workers say fail to match inflation and rising living costs.

The dispute follows the rejection of the government’s latest pay deal in March 2026, with some workers arguing that increasing costs, including rising car park fees, were outpacing proposed salary increases. The ACT’s public sector enterprise agreements, which cover most of the workforce, expired on March 31, 2026, adding pressure to ongoing negotiations.

The industrial action is expected to place further strain on government services across Canberra. Hundreds of public servants had already marched outside the Legislative Assembly on May 1, with the union stating that some non-acute areas of Canberra’s hospitals were shut down for several hours as staff attended the rally. Separately, a union representing ACT public hospital doctors has begun the process of voting on protected industrial action after 80% of its members rejected the government’s pay offer.

The territory government’s latest proposal, offered in mid-March, included annual wage increases of 3% over three years. The deal also proposed delaying a planned 0.5% increase in employer superannuation contributions to 13% until July 1, 2028. Previously offered entitlements, including more than 12 weeks of additional leave for non-birthing parents, would have remained unchanged under the proposal. An earlier pay offer made in December 2025, worth more than 7.5% over three years, was also rejected by workers.

According to the ACT government’s budget review, the consumer price index was forecast to rise by 3.25% in 2025-26 and up to 2.75% the following year, meaning the initial pay offer was expected to remain below inflation. CPSU representatives said workers were seeking wage increases at or above the inflation rate, currently estimated at around 4.6%.

"These workers don't want to stop work. They care about and value the work they do for our community every day," said Maddy Northam, ACT regional secretary. "Now, they are asking the government to value their work, too. We know the community understands just how important these jobs are. They rely on them to access government services every day.” He added.

Speaking during question time, Andrew Barr, ACT Chief Minister said, “The government needed to carefully balance any revised pay offer against broader fiscal pressures. There is no magic pot of money, sitting out there. If there were, we would access it.”

With unions continuing to push for inflation-linked wage increases and more public sector groups considering protected action, the dispute is likely to intensify in the coming weeks as negotiations between the ACT government and public sector workers remain unresolved.