Vice-captain David Warner fired back at his boss, declaring players could sign up with Twenty20 franchises around the world if they were unemployed on July 1.
ACA chief executive Alistair Nicholson agrees with Australia's opening batsman, whose stocks rose even further in the just-completed IPL.
"To threaten Australia's cricketers shows an apparent lack of appreciation of international circumstances," Nicholson said.
"CA forcing them into unemployment is an open invitation to the international cricket world. It's a dangerous mistake and one that is completely unnecessary.
"When you threaten them with unemployment you place them squarely in the sights of the new cricket world."
Nicholson added that players were "in high demand for more money all over the world" but desperate to play for Australia plus their state and Big Bash League sides.
"If they were being greedy they would have taken the deals CA were offering them," Nicholson said, referencing the fact Warner and other test stars would be paid higher wages under CA's proposal.
- AAP