The state government will press on with its plans to cut the equivalent of 821 full-time jobs from the public service before June, despite the commission's recommendation for a 12-month pay freeze to reduce the losses.

Mr Gutwein said the commission had overstepped its areas of responsibility.

"The commission has overstepped its purview," he said.

"It's not their role to inject themselves into a budget debate, which is what they did.

"The TIC and the unions don't set the budget. The government does."

Mr Gutwein said the TIC's recommendation for the government to make no job cuts this year other than the 361 outlined in the budget showed "an extraordinary disregard for the challenges facing the state".

However, Mr Gutwein said he still had confidence in the commission and its president Tim Abey.

Health and Community Services Union secretary Tim Jacobson said the government had never really wanted a pay freeze.

"Right from the outset it was always the government's intention to sack workers and the pay freeze was simply a smokescreen," Mr Jacobson said.

"It is the government that is responsible for sacking 500 workers and for decimating public services."

Mr Jacobson said unions would not give up their fight and had a number of legal and industrial options still open, which will be discussed at a meeting today.

It is understood the unions may seek an order from the commission under the same terms as the recommendation.

However, even if they were successful, the order would likely be the subject of a Supreme Court challenge by the government.

Opposition treasury spokesman Scott Bacon said Mr Gutwein was "drunk on power" and was being "arrogant in the extreme".