Treasurer Peter Gutwein has dismissed a six-month wage freeze offer being prepared by public sector unions as a "straw man" proposal.
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The unions are preparing to put an offer to the government of a pay pause until the financial year, on the condition that no further job cuts are made.
Mr Gutwein last night wrote to the president of Unions Tasmania, saying the offer would not reach the government's savings target.
"The government would be pleased to coinsider genuine pay freeze proposal; however, we will not countenance 'straw man' proposals," he says in the letter.
Mr Gutwein said if the government could not find $50 million in savings this year, then frontline jobs could be cut.
"What we need to do is find is a structural saving within the budget," he told reporters this morning.
"What they are proposing in a six-month pay freeze is around $15 million worth of savings."
Mr Gutwein said cabinet would meet next week to decide where to make cuts if it had not received an acceptable pay freeze offer.
"Any cuts to health or education will be on the unions' heads," he said.
Unions Tasmania secretary Steve Walsh has said that an 18-month freeze would be too long, but says unions are prepared to negotiate public sector savings for next year's budget.
The Police Association last week made an in-principle agreement with the government for an 18-month pay freeze in exchange for a quarantining of front line jobs from any further cuts.