Public servants rally in Canberra over pay negotiations

Hundreds of federal public servants have protested in Canberra's CBD over stalled pay negotiations.

Employees at several government agencies have been offered a 0 per cent pay "rise", despite inflation currently running at well over 2 per cent.

The Community and Public Sector Union (CPSU) said it was prepared for a long fight with the Federal Government.

CPSU national secretary Nadine Flood predicted that members would vote for industrial action.

"We would be prepared to sit down and thrash this out at bargaining tables but in the face of this draconian position from Government, a Government that won't talk, we face this decision and we are ready for it," she said.

Ms Flood said several departments negotiating new workplace deals had indicated plans to remove the legally binding entitlement to the generous public service employer contribution of 15.4 per cent.

"We could see a cut to superannuation, a cut to leave, a cut to other conditions that equates to a 5 or 6 per cent pay cut," she said.

Ms Flood said there was overwhelming support for a strong union campaign.

"Over 5,500 people have joined the union since the release of the federal budget," she said.

This week the Government endorsed a 1.5 per cent pay increase for the military, an offer soldiers described as "insultingly low".

On Tuesday the Fair Work Commission said it was considering an application for industrial action among staff at the Department of Veterans Affairs.

A ballot is already underway at the Department of Human Services (DHS) on possible industrial action which could hit Centrelink and Medicare operations.

Current workplace agreements for 165,000 public servants expired on June 30.

Bargaining negotiations have been underway in 70 agencies but none have been able to strike a deal.

The Government promised to axe 16,500 public service positions over three years as part of its budget savings measures.

Almost 40 per cent of public servants are based in Canberra.