The Tasmanian Government says it will refer its ongoing public sector wage dispute to the independent Tasmanian Industrial Commission.

Premier Will Hodgman says the matter should be referred to the commission for arbitration after almost a year of bitter back-and-forth.

“What I am doing today is writing to the unions to suggest this matter should be dealt with by the independent umpire,” he said.

It comes as industrial action by public sector unions escalates, with prison officers walking off the job this week, following cleaners and groundskeepers with the education department who have stopped school cleaning, gardening and maintenance.

“What we need to do is demonstrate to the Tasmanian people that enough is enough, and to have this matter resolved independently by the Tasmanian Industrial Commission,” Mr Hodgman said.

The referral would need the support of unions for arbitration to proceed.

The Community and Public Sector Union's (CPSU) Tom Lynch said public sector unions want the terms of reference for the arbitration before they would agree.

“If the dispute can't be resolved then the independent umpire is the right place to go, but to be honest I don't trust this Government in drawing up terms of reference,” he said.

“Clearly they will have to have our agreement if they intend to refer the matter to arbitration.”

In the meantime, unions are refusing to call off industrial action.

“Our campaign will continue until we know where this is going, [and] our members are totally fed up with a government that disrespects them and the work they do for Tasmanians,” he said.

Mr Hodgman has cancelled planned meetings with unions reps this week.

“Surely unions are going to agree this is the right way forward and call off all industrial action now,” he said.

The two parties were lining up to butt heads over the State Government's offer to roll over the existing agreement for one year, with a 2.1 per cent pay offer.

The Australian Nursing and Midwifery Federation (ANMF) to have taken the offer to members.

The State Government says it wants to continue talks with the ANMF about the one-year agreement, while going to the commission to work on a three-year wage deal with other public sector unions.