Tasmania's public sector workforce will be cut by another 500 after state parliament moved to stall a budget-saving measure.
As part of its August economic plan the Liberal government slashed 700 public service jobs and moved to impose a 12-month pay freeze for those who remain.
In combination the two measures were forecast to save the ailing state $370 million over four years.
Treasurer Peter Gutwein said the pay pause saved 500 jobs on which the axe would have otherwise fallen.
But state parliament's upper house wanted more time to look at the legislation.
In response the government withdrew its pay freeze bill in a move that has been labelled a childish temper tantrum by Labor, the Greens and unions.
"It was either a pay pause or it was 500 jobs, now we're getting on with the plan," Mr Gutwein told reporters on Friday.
The next scheduled pay increase is not due until December but the government said interest groups have been consulted previously and the time for negotiation has passed.
Labor leader Bryan Green said talks should be able to continue.
"This is not a time for theatrics and spiteful ultimatums, it's a time for cool heads to prevail."
Mr Gutwein's refusal to negotiate was likened to the behaviour of a petulant child by Tasmanian Greens leader Kim Booth.
"Temper tantrums are no substitute for good governance," Mr Booth said.
The government has ruled out using forced redundancies to make the job cuts.
Community and Public Service Sector Union secretary Tom Lynch said the move will affect frontline services and is sceptical of the government's intentions.
"I'm beginning to wonder whether this isn't what the government intended to do in the first place," Mr Lynch said.
The change means that in total there will be 1200 jobs cut from Tasmania's public service of some 27,000 over the coming four years.
The Tasmanian Chamber of Commerce and Industry which supported the pay freeze said the outcome is disappointing but that the state will be able to cope with the job losses.
"I don't think it's going to have a great impact at all," Chamber chief Michael Bailey told reporters.
He added that in Tasmania there is a public sector worker for every 20 residents, a ratio much higher than in any other Australian state or territory.
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