Townsville City Council CEO Joe McCabe hits back at AWU claims about pay rise negotiations

Townsville City Council negotiations with the AWU have descended into a tit for tat as the organisation reveals the huge wages bill ratepayers will foot over the next three years under the proposed agreement.

Joe McCabe and AWU Northern District Secretary Jim Wilson.

Townsville City Council’s says the proposal on the table for council staff as part of pay increase negotiations represents a $21.78m increase to the organisations wage bill over the next three years.

Earlier this week, Australian Workers’ Union members in the council’s outdoor workforce took industrial action over a pay dispute, arguing funds needed to be diverted from senior executives to workers with their boots on the ground.

On Tuesday, AWU members started industrial action as they pushed for a 20 per cent pay rise.

CEO Joe McCabe has hit back at statements made by AWU Northern District Secretary Jim Wilson that suggested the wage offer on the table would not deliver an $18 per week pay increase.

Mr Wilson told the Bulletin that the council was “refusing to deliver” a rise that equated to $18 a week for workers while executive remuneration had “exploded” by 79 per cent in the last financial year.

Mr McCabe says what the AWU is proposing doesn’t align with “community expectation”.

“In reality, our current wage offer for Stream B employees which includes labourers, plant operators, and other field staff – equates to an average increase of 7.66 per cent in the first year. This translates to an average annual increase of $4,556.45, or approximately $87.62 per week,” Mr McCabe said.

“Council’s offer to Stream B workers consists of a $1,500 base uplift, plus a 5 per cent wage increase, which is deliberately targeted at putting more money in the pockets of our lowest-paid outdoor workforce.”

For Stream C employees – which includes electricians, diesel fitters, and other tradespeople – Council’s offer equates to a first-year increase of 14.61 per cent, representing an average annual increase of $8,682.52, or $166.97 per week.

“Stream C roles are significantly impacted by regional and statewide skills shortages. Council must compete in a tight labour market for qualified tradespeople, and this offer is designed to attract and retain the critical workforce needed to deliver services for the community,” Mr McCabe said.

The council said Stream A employees, which covered the indoor workforce, had been offered a 5 per cent increase in the first year, equating to an average annual increase of $4,262.85, or $81.98 per week.

“This is a fair and reasonable increase for our administrative and professional staff, recognising their contribution while remaining financially responsible,” Mr McCabe said.

In addition to the first-year increases, all three streams have been offered 3 per cent wage increases in both the second and third years of the proposed three-year agreements.

Mr McCabe said he knew the community was “doing it tough”, and that this offered balanced fairness with the organisation’s obligation to “maintain sustainable service delivery and keep operational costs reasonable for ratepayers”.

“Contrary to Mr Wilson’s claims, council has not proposed any wage increase as low as $18 per week,” he said.

“Our offer begins significantly above that and is based on sound financial principles. The AWU’s claim for a 20 per cent uplift to the base wage — before negotiating wage increases for years 1, 2, or 3 of the proposed agreement – is not financially sustainable and would not align with community expectations.”

Originally published as Townsville City Council CEO Joe McCabe hits back at AWU claims about pay rise negotiations