More than 500 employees at the council-owned company walked off the job yesterday morning after rejecting the company’s offer on pay and conditions.

Unions representing TasWater workers then warned strike action would escalate if negotiations don’t recommence next week.

TasWater chief executive Mike Brewster yesterday maintained the company’s recent offer on pay and conditions was fair and reasonable.

Employees were offered a 2.8 per cent pay rise in the first year of the agreement, followed by CPI increases in subsequent years.

The company said proposed redundancy clauses remained unchanged for workers at two of three former companies now under the TasWater banner, while the cap had been increased for employees at the other corporation.

Mr Brewster said TasWater was collecting employee feedback on why the company’s offer was rejected before pushing on with further negotiations.

‘‘If all the relevant information including information requested from the unions involved, the intention is to meet next Thursday to continue bargaining,’’ he said.

TasWater has threatened to pull out of next week’s talks if the information is not submitted by 5pm this Friday.

But Professionals Australia, representing senior TasWater staff, said negotiating through emails and feedback forms was not the answer.

‘‘What we’re looking for is a genuine sit-down so we can actually discuss what their issues are,’’ state director Luke Crowley said.

The Communications, Electrical and Plumbing Union said TasWater was being pig-headed.

‘‘All we want to do is get them back to the table to bargain in good faith,’’ state secretary Todd Lambert said.

‘‘If TasWater don’t come to the table next Thursday, the guys are putting in for a full day’s stoppage to get them to the table.’’