Victorian Union Refuses to Back Labor Over Job Cuts and $1.2bn 2026

Victoria's public service union has refused to back Labor at the upcoming state election, condemning the government for cutting public service jobs while spending $1.2bn on consultants. The Community and Public Sector Union (CPSU) will announce the decision on Wednesday, joining several other unions that have refused to back Labor or are actively campaigning against the government ahead of the 28 November poll.

Although the CPSU's Victorian branch is not formally affiliated with Labor, it has worked closely with the party in the past. But its secretary, Jiselle Hanna, told Guardian Australia it can no longer support the government. "If Ben Carroll's government won't commit to no job cuts in the public service, then our union cannot support him," Hanna said.

Why the CPSU Withdrew Support from Labor

The decision stems from successive cuts to the Victorian public service (VPS), a smaller subset of the public sector that is largely administrative. The government has been seeking to rein in employee expenses—the state's largest area of expenditure—by cutting about 1,000 VPS roles, including more than 300 executive positions, and merging several government entities following an independent review led by Helen Silver last year.

The government says the changes delivered $4bn in savings and that frontline roles were not affected. As of June 2025, there were some 58,000 employed in the VPS, compared with almost 400,000 in the broader public sector.

But the CPSU argues that the cuts, combined with the $1.2bn consultant spend, show misplaced priorities. The union's refusal to back Labor is a significant blow, as it signals growing discontent among public sector workers ahead of the election.

What the Union's Decision Means for the Election

The CPSU joins several other unions that have refused to back Labor or are actively campaigning against the government. This could weaken Labor's support base and embolden opposition parties. The union's stance may also influence public sector workers, who are a significant voting bloc.

With the election on 28 November, the government faces mounting pressure to address concerns over job cuts and consultant spending. The CPSU's decision highlights the tension between fiscal restraint and public sector morale.

Key Takeaways

• The CPSU Victorian branch will not support Labor at the 28 November state election.
• The union cites public service job cuts and $1.2bn consultant spending as reasons.
• The government says cuts delivered $4bn in savings without affecting frontline roles.
• Other unions have also refused to back Labor, signaling broader discontent.
• The decision could impact public sector workers' voting behavior.

Comparing the Numbers: Job Cuts vs. Consultant Spending

What to Watch Next

As the election approaches, watch for how the government responds to the union's decision. Will it commit to no further job cuts? Will it reconsider consultant spending? The CPSU's stance may also prompt other unions to take a more active role in campaigning against the government.

For businesses, the outcome of the election could affect public sector spending and regulation. Grand Goldman's analysis of Lloyds Bank AI Cost Cuts: £2bn Savings Strategy shows how other governments and companies are using technology to cut costs, a trend that may influence Victoria's approach.

Similarly, the Lloyds Bank AI Cost Cuts: £2bn Strategy for Growth highlights the potential for AI to drive efficiency. Victoria's reliance on consultants might be questioned if such technologies prove effective.

The union's decision also raises questions about the role of consultants in government. As Australia's $2bn Pfas Lawsuit Against 3M: What It Means demonstrates, costly external contracts can have long-term consequences. The background to this story is set out in Australian Unions Turn on Labor Ahead of Victorian Election. A related thread runs through Socialist Teachers Target Victorian Labor MPs in State Election. Earlier coverage in Victorian Labor's Union Trust Crisis Threatens Election Campaign shows how the argument developed.

On the political front, Mike Lindell Refuses to Concede Minnesota Primary Defeat shows how contested outcomes can linger. While not directly related, it underscores the importance of clear mandates. A closer look at the same subject appears in Lloyds Bank AI Cost Cuts: £2bn Savings Strategy. Anyone following the wider picture can start with Lloyds Bank AI Cost Cuts: £2bn Strategy for Growth. The same theme surfaces in Lloyds Bank AI Strategy Cuts £2bn Costs, Boosts Growth, which takes a different angle.

Finally, the CPSU's move may inspire other unions to follow suit. The Lloyds Bank AI Strategy Cuts £2bn Costs, Boosts Growth illustrates how cost-cutting can boost growth, but only if managed well. Victoria's government must balance fiscal discipline with public sector trust. Context on how this played out before sits in Female Victorian MPs Face Violent Threats Before Election. A companion piece, Victoria Expands Corruption Definition Before State Election, approaches the same subject from another angle.