Allan government offers healthcare workers 12 per cent pay rise in bid to end industrial action

18 February, 2026

The Allan government has offered Victorian healthcare workers a significantly improved pay deal in an effort to bring prolonged and disruptive industrial action to an end.

Under the new proposal, workers would receive a 12 per cent wage increase over two-and-a-half years — a marked improvement on two previous offers that were rejected by union members.

The Health Workers Union (HWU), which represents thousands of frontline hospital staff including cooks, cleaners, orderlies, theatre technicians, ward clerks, security guards, allied health assistants and phlebotomists, confirmed the offer would now be formally presented to members for consideration.

HWU lead organiser Jake McGuinness said the Premier’s direct intervention had resulted in a more substantial offer that recognised the essential role low-paid healthcare workers play across Victoria’s hospital system.

“The Premier’s intervention has delivered a much-needed investment in low-paid healthcare workers and recognition of the essential role they play across Victoria’s health system,” he said.

However, he cautioned that the dispute was not yet resolved.

“This dispute isn’t over until we’ve signed on the dotted line,” Mr McGuinness said. “But we’re closer to a deal now than we’ve been in over a year.”

Despite the improved offer, a planned protest at the official opening of the new Footscray Hospital is still scheduled to proceed on Wednesday, with around 1000 workers expected to demonstrate at the site.

The government’s revised proposal comes as the union was preparing to seek approval from the Fair Work Commission for further protected industrial action. This would have included expanded work bans across the state, such as kitchen closures, tighter limits on elective surgeries, additional hospital bed closures and the capacity to undertake indefinite rolling strike action.

An escalation of that magnitude would significantly disrupt Victoria’s public health system, which has already been affected by bed closures, surgery cancellations and administrative and cleaning bans.

Semi-urgent Category 2 procedures — which are typically required within 90 days — as well as Category 3 surgeries such as tonsillectomies, non-emergency hip replacements and rhinoplasties have been impacted.

The Allan government has faced mounting pressure to resolve the dispute amid concerns about patient care and system capacity.

Speaking at a press conference at Footscray Hospital on Tuesday, the Premier reaffirmed the government’s support for healthcare workers.

“We want to see healthcare workers have the best facilities to work in, alongside the conditions that they deserve,” she said.

“And we’ll continue to negotiate in good faith with the Health Workers Union, because health workers do deserve to have the best pay and conditions to support the work that they do.”

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