Federal Court rejects Central Goldfields Shire’s appeal of multi-council bargaining with Ararat

A union has hailed the ability for two regional council workforces to bargain together a “win”, as others warn of the broader implications.

Maryborough Town Hall within Central Goldfields Shire Council.

The federal court has upheld a decision to allow workers at two regional Victorian councils to jointly push for better wages and conditions, in a potential “test case” for other local governments across the state.

In November 2024, the Australian Services Union applied for and received Fair Work Commission authorisation for Central Goldfields Shire Council and Ararat Rural City Council workers to bargain for an enterprise agreement together.

The same day, Central Goldfields Shire lodged an appeal to the Federal Court of Australia against the decision “to retain its independence” in negotiating with its employees.

At the time, interim chief executive Sally Jones said the appeal was in the best interests of its staff and community and called the situation a “test case” for other Victorian councils.

Central Goldfields Shire Council interim CEO Sally Jones.

“We know that single interest bargaining can impact councils’ ability to tailor agreements to their specific workforce needs,” she said.

“When you have a national union coming in wanting to merge the entitlements of two councils with different demographics and workforces without discussion, compromises will have to be found.

“To date the union hasn’t been able to advise how this will happen.

“It may result in wage increases and conditions that do not align with individual councils’ financial and operational circumstances, potentially leading to budget constraints, reduced services, or workforce reductions.”

But on April 29, the council’s appeal was dismissed by Justices Berna Collier, Leslie Snaden, and Elizabeth Raper, who determined it had not demonstrated the joint bargaining deal would be contrary to the public interest.

Australian Services Union secretary Tash Wark.

The ASU hailed the result as a “win for Central Goldfields employees and common sense”, saying it would resume bargaining for a multi-enterprise agreement with the two councils.

“The last wage increase CGSC workers received was 1.5 per cent, below commensurate council increases and the cost of living in Victoria,” secretary Tash Wark said.

“Workers at Central Goldfields Shire Council can now look to bargain for better outcomes with their fellow workers at Ararat Rural City Council, and ASU will support them all the way.

“The decision sends a message to the industry and other employers seeking to block workers’ rights under new legislation.

“Where a majority of workers have indicated a clear appetite to bargain together with other workers across similar workplaces, employers should not waste time and money using lawyers to try and stop it but rather work with the union movement, as the executive of Ararat Rural City Council willingly did from the outset.”

It is now open to Central Goldfields Shire Council workers to bargain alongside their Ararat counterparts.

Ms Jones said the council was disappointed with the decision, but respected it.

She said the appeal was lodged to represent the 49 per cent of Central Goldfields’ workforce that did not support bargaining with Ararat.

“Unfortunately, we do not think there is sufficient clarity around what bargaining with Ararat looks like,” Ms Jones said.

“This may lead to further delays in having an enterprise agreement agreed to and voted on by employees.

“Also, other councils can now be roped into bargaining: if the ASU seeks to do this, this can lead to further delays to bargaining or councils being roped into an agreement they cannot afford – meaning council roles could be restructured and services in the sector could be adversely affected.”

Central Goldfields Shire’s appeal was quashed in the Federal Court.

Ms Jones said the ASU had put forward a “false narrative” about the multi-enterprise agreement and pay rises, especially since the council gave its workforce a pay rise even while its appeal was on foot.

It had also not misused ratepayers’ money, she said, as the barrister who represented the council did so pro bono.

“The ASU have widely discussed their plan to advocate to the state government to remove or lift the current rate cap,” Ms Jones said.

“While the sector would welcome the ability to increase revenue to meet rising costs of service provision, this also means the ASU is advocating to increase rates and we know the community have advised they are already struggling with costs of living.

“This hasn’t been made clear in their media releases, however it has certainly been openly discussed as a way forward by the ASU.”

She said Central Goldfields Shire Council would continue to bargain in good faith.