Thousands of CSIRO scientists and researchers are the latest group of government workers to reject the terms of the Coalition's tough industrial relations policy.
The organisation's workforce voted by a margin of 70 per cent against a proposed three-year deal that offered a pay rise of 2 per cent per year but came with deep cuts to conditions and entitlements.
Most CSIRO staff have not had a pay rise since 2013 and the Turnbull government is enforcing a ban on back pay so the offer is effectively less than 1 per cent per year in return for trading away swaths of conditions.
The emphatic rejection of the proposal, understood to be the first no-vote in an industrial ballot in the CSIRO's history, means that the dispute in the nation's peak science organisation will drag into its third year.
The organisation says it is disappointed that its staff will not be getting a pay rise.
But CSIRO Staff Association secretary Sam Popovski said the result showed the organisation's management needed to change its approach to bargaining.
"This strong result sends a clear message that CSIRO staff will not accept cuts to workplace conditions and rights," Mr Popovski said.
"It's now up to the CSIRO executive and board to genuinely listen to the views of staff, drop this regressive bargaining policy, get a fair deal done."
"The staff association calls on the CSIRO executive to seize this opportunity and urge the government to change the bargaining policy which remains the major obstacle to rebuilding trust across the organisation."
CSIRO spokesman Huw Morgan said the organisation would begin again to try to reach an agreement with its workforce.
"CSIRO will work with staff and bargaining representatives to determine the next steps for resolution to enterprise bargaining in CSIRO," Mr Morgan said.
"It is disappointing the organisation is unable to provide a pay rise for staff but CSIRO and bargaining representatives will continue to work together to reach a successful future outcome."
The vote is the latest setback to the hardline Abbott-era bargaining policy after the ABC defied Coalition attempts to impose the policy on the broadcaster.
Abbott government ministers are understood to be "infuriated" by the new deal for ABC staffers which includes boosted parental leave, a $500 sign-on bonus, back pay and new provisions for domestic violence leave.
