Tasmanian public sector unions say workers are “insulted and disrespected” by their latest pay offer.

The Government has a 2 per cent pay rise offer on the table, but last week cancelled a scheduled negotiation meeting.

Mr Gutwein has described it as “fair and affordable” to offer 2 per cent a year with the only change to entitlements being an additional 20 days of leave for victims of family violence.

The unions want a 2.5 per cent rise in December, 2.75 next year, and 3 per cent in 2018.

Community and Public Sector Union (CPSU) secretary Tom Lynch said 2 per cent is unacceptable.

“The overwhelming message from public sector workers is they feel insulted and disrespected,” he told the ABC.

Mr Lynch said workers accepted 2 per cent rises since 2011, which they did as a matter of goodwill when the budget was in bad shape.

“A government that is sitting on healthy surpluses of more than $140 million in two years can afford to find an additional $20 million over three years to reward public sector workers, who have borne the brunt of falling real wages and massive job cuts,” he said.

The Government appears unlikely to budge.

“As the unions understand, the only alternative would be for there to be offsetting reductions in employee numbers in order to manage the budget consequences,” he said.

“That is not an alternative the Government wants to consider, nor is it one we believe that the Tasmanian community wants.”

Mr Gutwein has ruled out back pay if the offer is rejected talks are forced to continue.