Hello everyone,

I would like to provide you an update on the Public Sector Union Wages Agreement (PSUWA) negotiations as Acting Head of the State Service, particularly following recent media commentary.

Over the past two weeks, following the appointment of former Assistant Commissioner of Tasmania Police, Mr Glenn Keating, as the Lead Negotiator, intensive discussions with union representatives have been in progress to finalise this Agreement by 31 March 2026.  I attach a letter from the Head of the State Service, Kathrine Morgan-Wicks (you can find a copy here) sent to unions on 16 February.

As outlined in that letter, the government committed to exploring a packaged approach including options for offsets, similar to the three year agreement recently reached with the Police Association of Tasmania.

The Lead Negotiator and team have committed, in good faith, to continue intense negotiations for the next four and a half weeks. Their focus is on considering options and developing proposals to finalise an agreement for the PSUWA by 31 March 2026. If an agreement is reached by this date, the government has committed to paying the first salary increase effective from the first full pay period on or after (ffppooa) 1 December 2025.

Good faith negotiations are two way and require all parties to engage openly and constructively.   We remain committed to this approach and to finalising the PSUWA by 31 March 2026 to enable the first salary increase to be paid from ffppooa 1 December 2025.

PSUWA Meeting Tuesday 24 February 2026

At yesterday’s meeting with HACSU, CPSU and AEU, the Lead Negotiator responded to a number of threshold matters of the unions and outlined the components of a potential package.

This included salary increases, new allowances, structural reforms, and a range of contemporary working conditions to support a productive and efficient Tasmanian State Service.

As part of the proposal, the discussions also covered options for potential offsets to fund any proposed package. This approach balances our commitment to ensuring State Service employees receive a fair salary increase and conditions as soon as possible, with responsible and sustainable budget management.

The proposal put on the table yesterday for further discussion included:

  • Salary increases for 3 per cent, in years one and two, plus structural reform in those years
  • Salary increase of 2.75 per cent increase in year three, consistent with the offer that has already been accepted by the Police Association of Tasmania.

Any proposal and final offer is, and always has been, conditional on efficiencies and offsets being negotiated, depending on the final package.  This was a component of the agreement reached with the Police Association of Tasmania (PAT), with PAT identifying and proposing offsets.

Claims that the government and the HoSS have reneged on commitments are incorrect, and it is disappointing that unions have portrayed yesterday’s discussions in this way. We continue to approach these negotiations seriously, in good faith, and with a genuine commitment to examining all issues to reach agreement and to ensure the salary increase is paid from ffppooa 1 December 2025.

It is also disappointing that unions have indicated the escalation of work bans and further stop work action.  This is not in line with the commitments made and puts the offer of backpay at risk if we cannot reach agreement by 31 March.

The Lead Negotiator has another meeting scheduled for this Thursday, 26 February, and both he and the bargaining team will attend. We will continue to make every effort to reach agreement by 31 March.

We stand by our commitment to an intensive negotiation period to reach agreement by 31 March so that you can receive a pay rise, and conditions that support a productive working environment for employees, as soon as possible.

Thank you all for your continued professionalism as this important work progresses and as we continue to strive to deliver the best possible services for the Tasmanian community.

Kind regards,