Public service leaders are grappling with a lukewarm reception to Katy Gallagher's lower-than-anticipated pay increase offer. 

The Australian Public Service Commission, in an extensive release of data, tables, and calculations on Monday, defended its proposed maximum 11.2 per cent increase, citing the necessity to bridge the wage gap among employees and create a fairer Australian Public Service (APS), regardless of the agency.

This strategy resembles the one used by New South Wales Health in its dealings with the Health Services Union (HSU). The HSU secured a one-year deal with a 4.5 per cent to 8.5 per cent increase and a $3,500 cash component after publicly criticising the government for unfulfilled promises.

The negotiation process for federal public service pay spans three years, requiring both unions and employers to make long-term economic predictions. Therefore, headline percentage figures are crucial.

If the NSW Health pay increase were stretched over three years, it would range from 13.5 per cent to 25.5 per cent, excluding the cash component. 

The APS, which currently offers lower wages compared to other Australian public service sectors, is treading carefully in its communication efforts.

“[The revised pay offer] is comparable to other state and territory government wage offers, and forms part of a package of change that offers considerable enhancements to conditions for all employees,” the APSC said.

However, the optimistic approach may not sit well with employees grappling with rising costs of living, such as increased interest rates, rent, and fuel prices.

Nevertheless, the APSC says there are benefits to the pay offer, particularly for lower-paid employees, as a step toward a fairer APS, allowing for career progression based on skills and preferences rather than salary considerations.

The government's confidence in controlling living costs underpins this offer, with optimistic economic assumptions. 

The offer surpasses Wage Price Index and Consumer Price Index forecasts over the agreement's lifespan.

Despite the reassurances, the Community and Public Sector Union (CPSU) is allowing its members to assess the offer before consulting and holding a vote. Meanwhile, other unions are expressing dissatisfaction.

The Australian Services Union, representing Australian Taxation Office staff, deems the offer inadequate and requests quarterly pay increases linked to the Consumer Price Index. 

Professionals Australia is proposing a new STEM classification for APS staff to align salaries with the public sector.

The Australian Federal Police Association (AFPA) is also critical of the negotiation process. 

The union claims that negotiations have stalled, and there is a lack of progress in initiating pay talks. 

The AFPA says it is ready to commence negotiations but insists on a timeline from the AFP and the APSC.

If a suitable schedule is not provided, the AFPA intends to initiate formal bargaining. This could pose challenges for both the APSC and the Labor government, which have been highlighting their commitment to public sector pay and conditions.

The delay may be due to the APSC's desire to secure a deal with the CPSU, which could then serve as a sector-wide benchmark. 

Non-clerical unions remain concerned that productivity gains are easier to demonstrate in specific agencies reliant on technical or scientific staff.

The AFPA argues that to retain highly trained personnel, it must offer competitive salaries and not force them into better-paid roles elsewhere. 

Delays in negotiations are affecting members' financial well-being, making additional employment necessary for some. Ensuring necessary pay adjustments is imperative, the AFPA states.