The Country Fire Authority would reject the "current form" of a union's list of claims being negotiated with the state government amid fears it will irrevocably fracture the firefighting workforce.
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A drawn-out dispute over the terms of the new CFA industrial agreement has dramatically escalated in recent weeks after Premier Daniel Andrews intervened.
Mr Andrews' move has been viewed as a sidelining of his emergency services minister, Jane Garrett, who has repeatedly resisted and condemned as "outrageous" the United Firefighters Union's calls for greater power over CFA management.
The Premier's intervention has sparked rising speculation that the government is preparing to strike a deal favourable to the bulk of the union's demands.
But sources told Fairfax Media the CFA leadership would not approve any agreement that surrendered the significant powers sought by the union because they risked destroying the CFA model and splitting career and volunteer firefighters apart.
A senior source said the CFA's chief executive and chairperson would refuse to sign the current form of the deal, and that Ms Garrett – the only person who could order them to sign – would refuse to do so
The apparent deadlock now raises the prospect of high-level resignations or sackings if the government tries to ram the agreement through.
"We are really in a deepening crisis," the source said.
"And at the end of this, we have to get back and work together, but the damage done is horrendous."
At the core of the long-running dispute has been a battle over work conditions, with the CFA pushing back against a clause in the agreement that requires union consultation and agreement on every operational change.
Concern also surrounds a clause for a set number of paid firefighters who must be the first responders to firegrounds in some CFA zones, which some say would flood rural and suburban stations with unneeded extra career staff and "marginalise" volunteers.
In a high-level meeting on Friday, the CFA board was briefed about the state of negotiations for the new enterprise bargaining agreement.
"Today's meeting was not about making a decision about the union's claims, it was about making sure all board members were fully briefed about the situation, acting CFA chair John Peberdy said.
"No deal has been made, and we will continue to work with the State Government and the union to resolve the EBA negotiations quickly and ensure the agreement provides the best deal for Victorians."
Fairfax Media understands the board meeting expressed a "united front" of unanimous opposition to the union's log of claims.
"The Premier is keen to make a deal, but at what cost?" another insider said.
United Firefighters Union secretary Peter Marshall said the union's claims were being repeatedly misrepresented, causing unnecessary angst among volunteer crews and the public.
"This is irresponsible hysteria being created by people that hold responsible positions in the community," he said.
The Andrews government had been the target of months of public campaigning and condemnation from the firefighters' union, which accused the Premier of reneging on key promises made before the last election.
The union's relationship with Labor soured since the 2014 election campaign when firefighters door-knocked homes in marginal electorates, widely believed to have played a major role in securing the win.