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In a move that takes it a step closer to a strike by more than 200,000 public servants and threatens to test the state’s pledge to rebalance public finances, the Public Servants Association (PSA) has lodged a dispute with the government after wage negotiations stalled.

The declaration of the dispute kicks the talks to the Public Service Co-ordinating Bargaining Council (PSCBC) for mediation. It came after the PSA rejected the sweetened offer of 2%, which is being reported here for the first time and was tabled last week. The union wants an inflation-beating 10% increase across the board...

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