Victorian Premier Daniel Andrews says there is no reason for the state's nurses to take industrial action in pay negotiations.

Premier Daniel Andrews says there is "no reason at all" for industrial action to be taken in the state's pay negotiations with nurses and midwives.

About 1000 Australian Nursing and Midwifery Federation members are expected to gather in Melbourne on Wednesday afternoon to vote on taking industrial action if EBA negotiations break down.

The current agreement ends on March 31 and members want a pay deal to bring them into line with their NSW counterparts, which could see pay rises between three and 20 per cent, depending on a nurse's grade.

Possible industrial action could include bed closures, strikes and the wearing of slogan T-shirts.

"There is no reason at all that any industrial action needs to be taken in our hospital system," Mr Andrews told reporters on Wednesday.

Mr Andrews, a former health minister, said he had a long track record of working with nurses and doctors and said a compromise could be found.

He said there needed to be a balance between fairly rewarding nurses and leaving enough money in the state's coffers to grow hospital services.

"We will find a fair and balanced outcome that rewards our nurses and midwives for the amazing work that they do," he said.