Proposed $450m deal would give police a 4.5 per cent annual pay increase over the next four years

A new offer that would cost the government an estimated $456m may bring an end to its long-running industrial dispute with Victoria Police.

The Allan government is a step closer to ending its long-running police pay dispute with members set to formally vote on a new offer.

Under the terms of the $450m deal police would lock in a 4.5 per cent annual pay increase over the next four years – 0.5 per cent more than the four per cent rejected by members last year.

Frontline police would also secure an additional 0.5 per cent, and would no longer be required to “kit up” outside of shift times.

The offer – which would cost the government an estimated $456m based on its current $3.2bn annual wages bill – is significantly less than the 6 per cent per year that was being sought by the police union.

The Allan government’s $450m deal would lock in a 4.5 per cent annual pay increase over the next four years for police officers. Picture: David Crosling

It would also kill a “golden handshake” clause in the current agreement which allows retiring members to cash in up to 12 months accrued sick leave – a move estimated to save up to $50m a year.

But a police association spokesperson said the offer had been welcomed by members.

“After gauging the sentiment of our members on the revised EBA proposal via an informal poll, the Police Association has notified the Fair Work Commission that we accept its recommendation regarding the EBA,” he said.

“We will engage with Victoria Police tomorrow (on Friday) in furtherance of a Heads of Agreement and a subsequent formal ballot of members.”

The deal would kill a ‘golden handshake’ clause. Picture: Nadir Kinani

If accepted by members the deal would end the almost two year pay dispute that sparked increasingly hostile industrial action.

It would also be hailed a major win for the government, and new treasurer Jaclyn Symes, given it would cost significantly less than the estimated $840m pay deal that was being sought by the police union.

That deal would also have given police an extra 14 days off a year because of the introduction of new 8.5 hour shifts.

The introduction of a new rostering system had been a major sticking point in negotiations.

If accepted, the deal would be hailed a major win for the government and new treasurer Jaclyn Symes. Picture: James Ross

A landmark nine-day fortnight for frontline police was initially central to police demands but was opposed by chief commissioner Shane Patton.

Mr Patton publicly rallied against the proposal warning it would threaten community safety, force station closures and stretch police resources.

A breakthrough in negotiations ultimately saw the state government, Victoria Police and the Police Association agreeing to implement the new nine-day model with union members voting to accept the phased-in introduction of nine hour shifts by 2028.

It would have given police an extra 22 days off a year, a 16 per cent pay rise over four years, the addition of two new allowances and a transition to predictable rostering.

The nine-day fortnight for frontline police was opposed by chief commissioner Shane Patton. Picture: Nadir Kinani

However 57 per cent of police later rejected the deal, forcing the government back to the negotiating table.

If accepted, the new deal would be backdated to June 1.

Originally published as Proposed $450m deal would give police a 4.5 per cent annual pay increase over the next four years