Fire Services Victoria in bargaining agreement showdown with United Firefighters Union

Victoria’s fire service agency is set for a showdown against the powerful firefighters’ union in an “unprecedented test case” that could overhaul how workplace bargaining is carried out.

The ongoing pay dispute between Fire Services Victoria (FSV) and the United Firefighters Union (UFU) will kick off on December 18. Picture: Valeriu Campan

Victoria’s fire service agency is set for a showdown with the powerful fire fighters union in what is being called an “unprecedented test case” that could drastically alter how workplace bargaining is carried out.

Hearings for a determination on the ongoing pay dispute between Fire Services Victoria (FSV) and the United Firefighters Union (UFU) will kick off on December 18.

It is the first workplace bargaining agreement to reach a stalemate and progress to arbitration before the Fair Work Commission after new intractable bargaining legislation came into play.

The Herald Sun has been told that both unions and employers are watching the case closely to see whether the outcome will favour one party, and if it will impact how parties negotiate in the future.

The escalation comes after Victorian firefighters turned down a “mega deal offer” that included a whopping 12 per cent pay increase over four years and thousands of dollars in cash bonuses in August.

Firefighters from across Victoria rally earlier this year. Picture: Valeriu Campan

The militant UFU were demanding 25 per cent over three years.

With no deal reached after nine months of negotiations, under the new intractable bargaining laws the Commission must now step in and determine all aspects of the agreement.

Sources said the UFU risked not getting the wage increases demanded.

But they could also lose any bid for a controversial veto clause that gives them consultation and approval rights on anything from new hires to infrastructure.

The Victorian Government, which were blocked from being a party to the proceedings, risk that the arbitrators could order FRV to increase wages well above the government’s official cap of 3 per cent.

This would leave the state open to higher wage claims in future negotiations with other unions including the police, teachers and nurses, which would impact the government's ability to reduce their spending and mounting debt.

UFU boss Peter Marshall hit out at the legislation claiming it had a “major flaw” that “undermines the essence of and premise of enterprise bargaining”, as arbitrators now decided on all aspects of the EBA, even those already agreed upon.

“It’s a major disincentive for bargaining and an opportunity for an employer to place every condition before the arbitrators and that’s not what it’s designed for,” he told the Herald Sun.

An FRV spokesman said: “It was always FRV’s preference to continue negotiating for a replacement operational agreement with the bargaining representatives for our employees.

UFU boss Peter Marshall has hit out at the legislation. Picture: Valeriu Campan

“FRV have bargained in good faith and met our obligations to bargain in accordance with the Victorian Government’s Wages Policy. However, as is their right, the United Firefighters Union made an intractable bargaining application to the Fair Work Commission on 28 July 2023.

We respect the Fair Work Commission process and are hopeful of reaching an outcome that will be acceptable to all parties.”

A Victorian Government spokesman said the pay offer put to the UFU was “a fair pay offer in line with the wages policy”.

“Any settlement will continue the Government’s unwavering support of firefighters so they can continue doing their vital work keeping Victorians safe.”

In a sign of how bad relations have become with the UFU, in the lead up to the hearings the union has been issuing bulletins with personal attacks on FRV executives including Commissioner Gavin Freeman and Kate Fitzgerald, the Deputy Secretary for emergency services.

One Victorian union leader told the Herald Sun that the case was “a test case that we are all watching closely” that may have big impacts depending on the outcome.