Fraser Coast council, Services Union clash over wage deal

Efforts to secure a pay rise for 1000 Fraser Coast council employees have hit a brick wall. Here’s why there’s a dispute over wages.

The Services Union has accused Fraser Coast Regional Council of offering little more than “chicken feed” to its 1000 employees as a clash over a new three-year pay deal continues to heat up but council CEO Ken Diehm said any pay rise will have to come from rate rises or service cuts.

The Fraser Coast council has been accused of offering staff “chicken feed” instead of a decent pay rise as the council and union continue to clash over wages.

The Services Union has stepped up its campaign to secure a pay increase for the 1000 employees of Fraser Coast Council it says are being short changed.

However, council CEO Ken Diehm said any pay rise for workers would come from rate hikes or slashed services.

The council and the Union have been negotiating since the previous wage agreement expired in March.

In 2020, the council outlaid $68.57 million in employee benefits.

This was $6.3 million more than was paid in 2019.

The previous agreement secured staff wage increases of 2.5 per cent in the first year, and 2 per cent in years two and three.

The Union said Fraser Coast council staff were the lowest paid in comparison to all other similarly sized councils. Photo: Alistair Brightman / Fraser Coast Chronicle

Benefits sought by the union in the new deal included 20 days pandemic leave, the filling of all positions within three months of a vacancy, pre-natal leave, a payout of a percentage of personal leave annually or at end of employment, an extra annual leave day for every weekend day worked on a one-in-four roster and time off in lieu rates to accrue at overtime rates.

The council rejected those claims.

The Union spokesman said the requests were “reasonable and worthy of a reasonable response”.

“Fraser Coast Regional Council is a low paying council and Services Union members quite rightly want to address this,” he said.

A 1.5 per cent first year increase growing to 2 per cent over three years was rejected too.

Strike action was “one of many different options” on the table if the council refused to come to the party, the Union spokesman said.

Mr Diehm said the Union had “not made any concessions or suggestions that would help fund their proposed increases”.

“Given the current economic climate, and the council’s financial position, I believe that a 2 per cent annual increase over the life of the Enterprise Bargaining Agreement is fair and reasonable,” Mr Diehm said.

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He said council staff were already receiving substantial benefits.

“On average, council workers are paid more than 20 per cent above the award rate and receive other benefits not contained in the award such as 12 per cent superannuation, more generous leave provisions, substantial redundancy payments, higher allowances and penalty rates, and flexible work arrangements including a nine-day fortnight,” he said.

Council CEO Ken Diehm said on average council workers already receive significantly more benefits, including pay about 20 per cent above the award rate. Photo Lachie Millard

The Union said the council was dragging its feet.

“We don’t have a deadline that we are working to but the longer council insists on not coming to the table with a reasonable wage offer and ignoring Union claims the longer the process will take,” the spokesman said.

“We are highlighting to council that they are behind the eight-ball in local government and that they should not be using the pandemic as an excuse to carry on being the lowest paying Council in its category.”

Fraser Coast staff were the lowest paid of similarly sized councils, including Bundaberg, Gladstone and Rockhampton, the Union said.

Under the expired agreement entry level staff are paid $53,711 annually.

Fraser Coast Regional Council paid more than $68 million in employee benefits in 2019-2020, $6m more than the year before. Photo: Valerie Horton / Fraser Coast Chronicle

This jumps to $61,364 for level two staff, and $67,060 for level three.

Level eight staff earn at least $100,826.

Workplace bullying has been in the spotlight too.

The Union said he council itself had identified this as a problem.

“The CEO updated staff earlier this year stating that bullying had increased – including the fact that the employer assistance programme has had an increase in uptake,” the spokesman said.

Mr Diehm disputed there was an issue.

“There is no evidence of increased bullying within the Council, and over the last four years staff satisfaction has improved considerably,” Mr Diehm said.

“The Fraser Coast Regional Council is committed to ensuring a bullying-free workplace and are committed to providing bullying and harassment training to all staff.