Council & Business
2 May, 2025
Federal Court dismisses Central Goldfields’ appeal of new staff agreement
Council's fight against a proposed enterprise agreement has been shut down following the Federal Court's decision.
The Federal Court has shut down the Central Goldfields Shire Council’s fight against a proposed enterprise agreement, allowing council staff to bargain for better conditions.
The Australian Services Union (ASU) proposed a new, multi-employer agreement covering the Central Goldfields and Ararat councils more than 12 months ago.
The agreement, backed by a majority of staff, would see them able to collectively bargain for better conditions, including wages, with the exception of the CEO.
In a Federal Court decision issued earlier this week, Justices Collier, Snaden and Raper comprehensively rejected council’s arguments that an enterprise agreement was contrary to the public interest and dismissed the appeal.
The decision came after council appealed a similar ruling by the full bench of the Fair Work Commission in November last year, electing to take the matter further.
In light of the Federal Court’s decision, ASU secretary Tash Wark said employers should not attempt to block the rights of staff.
“The last wage increase Central Goldfields Shire Council workers received was 1.5 percent, below commensurate council increases and the cost of living in Victoria,” she 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.”
While the agreement would be between both Ararat and Central Goldfields councils, only the Central Goldfields has continually opposed the bargaining process on the grounds it is a “test case” for the local government sector and neglects the individual financial circumstances of councils.
Ararat council’s CEO Dr Tim Harrison previously contended that the Central Goldfields Shire Council was alone in its decision to oppose the agreement.
“[Ararat] has no inclination to appeal, and we would never waste ratepayer funds on a Federal Court appeal,” he said earlier this year.
However, the Central Goldfields has argued the agreement could see unsustainable wage increases for staff and lead to layoffs in the local government sector, negatively impacting the community.
Central Goldfields’ interim CEO Sally Jones said council is “disappointed” with the court’s decision, which could result in the local government sector being adversely affected.
“We took this course of action, not just because we felt it was the right thing to do for the sector, but because 49 percent of our workforce did not support bargaining with Ararat. While this is not the majority, these employees still deserved to have their voices heard,” she said.
“Unfortunately, we do not think there is sufficient clarity around what bargaining with Ararat looks like. This may lead to further delays in having an enterprise agreement agreed to and voted on by employees.
“Despite council’s feelings towards the decision, it will continue to bargain in good faith ... and expect respect to be shown at the bargaining table.”
In her statement, Ms Jones was critical of the ASU’s “false narrative” around pay increases, arguing it was misleading when first presented to council staff.
“I consider employees were not properly apprised of what a multi-enterprise agreement entailed, when the ASU sought employee approval for this,” she said.
“Council provided its workforce with a pay rise in good faith while the appeal was on foot. It has endeavoured not to disadvantage its workforce during this time.
“Any allegation from the ASU that council has misused or wasted ratepayer money is misconceived.”
Following the Federal Court’s decision that council’s appeal was unfounded, the ASU, Central Goldfields and Ararat councils will now resume bargaining in good faith for a multi-enterprise agreement.