THE public sector union has made up with federal Labor after the government agreed to work with the union to reduce job losses under its $1.8 billion efficiency dividend savings targets.
The Community and Public Sector Union (CPSU) had suspended its election campaigning for the Labor Party over concerns the "awful decision" could cost 5000 public sector workers' jobs.
National secretary Nadine Flood said on Friday the Labor Party had heeded the union's concerns and agreed to work with them on a range of alternative savings measures to help reduce job losses if it wins the election.
"Our executive's made a unanimous decision to lift the suspension of our election campaigning, and as we stand here today folks are getting in cars and heading back into the field," she said.
Workplace Relations Minister Bill Shorten told about 70 CPSU members gathered in Melbourne a Labor government would work with the union and Department of Finance and Deregulation to consider the alternative savings, including the merger or consolidation of agencies.
However Mr Shorten refused to outline what those alternative savings could be, or how many jobs could go.
He also said it would ensure alternative savings did not increase pressure on service delivery or jobs in the Department of Human Services and would work to ensure regional public service jobs numbers were maintained.
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