The chairman of the Public Services Commission has expressed his disappointment after members of the Unite union rejected the latest pay offer for government workers.

Rob Callister said the matter will now be referred to independent arbitration.

The offer, which was made in August, included 3% for 2025-26, backdated to April 1, and an increase in annual leave entitlement for all PSC staff who have accrued 10 years’ service from 28 days to 30 days.

This replaced a previous offer of 2.5% and a £200 lump sum - an offer that had been accepted by the other public service union Prospect.

The PSC said it recognises the impact that a delayed pay award will have on all its employees.

There are 4,276 government staff whose pay comes under the PSC.

The Commission said it has already approached the Manx Industrial Relations Service to begin the arbitration process as quickly as possible but admitted this is unlikely to bring a resolution in this calendar year.

Mr Callister said: ‘I’m disappointed especially as Prospect had already agreed it and when we’ve gone to mediation. I had thought we’d have agreement in place by Unite but obviously the members felt differently, and I have to respect that.

‘My vision had been to try to resolve this before December and for staff to receive their pay.’

He said he hoped referring the dispute to arbitration would ‘resolve it quickly for everyone involved’.

‘I’m happy to sit down with both unions and listen to what concerns they are raising,’ he added.

Both Unite and Prospect last year rejected a three-year deal made up a 4% increase for 2024-25, followed by 3% in 2025-26 and 2% in 2026-27.

A two-year deal billed as a final offer was also rejected. Then in April both unions accepted the backdated 4% increase for 2024-25.