Aged-care workers win battle for redundancy payments from Maribyrnong Council

A northwest council that outsourced its aged-care services went to the Federal Court before making the announcement in a bid to avoid paying redundancy entitlements. But now it’s been ordered to pay up.

Maribyrnong council in-home aged-care workers have won a battle for their redundancy payments. File photo

Sixty aged-care workers are celebrating after the Federal Court ruled Maribyrnong Council must pay them more than $2 million in redundancy entitlements.

The council announced in February it would outsource all aged-care positions to not-for-profit organisation Uniting AgeWell.

Staff would be able to work for the new provider under the same conditions until 2020, after which their contracts would change.

However, months before the announcement was even made, the council launched pre-emptive Federal Court proceedings to avoid paying redundancy entitlements.

Last week it lost its fight and was ordered to fork out $2.37 million to outgoing aged-care staff.

A worker of more than 20 years, who did not want to be named, said the ruling was a massive win for staff.

“This has now given us a choice. The council said originally that we could take the new position or resign,” she said.

“I was going to move (to Uniting AgeWell) because there was going to be no redundancy but now I could take early retirement.”

Maribyrnong Council did not respond to questions about how much the court case cost ratepayers.

Maurice Blackburn lawyer Kamal Farouque, who represented the workers, said Maribyrnong Council claimed it was not required to pay redundancy entitlements.

“The court has decided that the enterprise agreement gives workers that right if they lose their council jobs due to redundancy,” Ms Farouque said.

“Many other local government council enterprise agreements have similar provisions. So, the decision (sets) an important precedent.”

Australian Services Union Secretary Lisa Darmanin slammed the council for trying to avoid its financial obligations.

“It shows extraordinary disregard for longstanding workers that a local council would try to pre-emptively deny workers their entitlements by taking Federal Court action,” Ms Darmanin said.

MORE NEWS:

MARIBYRNONG RATES SYSTEM TO CHANGE IN DRAFT BUDGET

PRIMARY SCHOOL’S $60K FUNDRAISER TO FINISH SCHOOL HALL

HOW ONE APPEAL IS FIGHTING HUNGER ACROSS VICTORIA

However Maribyrnong Council community services director Clem Gillings said the council had filed the pre-emptive court proceedings to “clarify” its employment agreement.

“ … including understanding our obligations relating to redundancies as the employment agreement clauses were unclear,” she said.

“Council will absolutely meet all of the confirmed entitlements of staff.”

The council did not answer when asked how much the court case had cost ratepayers.