The union representing WA poles and wires utility Western Power says workers won't accept a proposed pay freeze.
Australian Services Union WA branch secretary Wayne Wood says staff have been asked to accept a new enterprise bargaining agreement comprising no wage increase in year one, inflation-aligned rises for the following two years and a 1.5 per cent pay rise in year four.
"I don't think our members will accept a pay freeze when they see that poor management has delivered lower profits than expected at Western Power," Mr Wood told 6PR radio on Friday.
He said he understood the new state government needed to tackle massive debt they'd inherited, however.
"The Labor party will be looking to save money - we can work with the government on that but we're not going to cop a pay freeze.
"We understand in these times that it's very modest, the pay increases that people get, but it must be above CPI in our view."
Mr Wood said members knew they would have been worse off if the Liberals had won a third term last month and proceeded with their key debt reduction plan to privatise 51 per cent of Western Power.
He said Western Power wasn't bound by the state government wages policy, but it reviewed the agreements and did not object to the pay freeze proposal.
The current agreement expires in August and negotiations have not yet commenced.
The union's comments come as Premier Mark McGowan confirmed significant job losses in the public sector as the government moves to tackle mounting debt.
When the new government provided a grim budget update earlier this month, it didn't rule out a blanket public sector wage freeze.
Opposition leader Mike Nahan says such a freeze should be matched for politicians by the independent Salaries and Allowances Tribunal.