By Aaron Neal
USU Manager, Legal & Industrial
Jul 29, 2008
Jurisdictional uncertainty regarding the question whether New South Wales local government is in the state or federal industrial relations systems remains. The USU continues to campaign for the Premier to decorporatise local government in New South Wales and to write to the Prime Minister asking him to stand by his pre election commitment to the USU and exclude local government from the federal industrial relations system. In the interim action is required to secure the 3.2% increase in wages and allowances due on 1 November 2008. AFPC $21.66 per week wage setting decision 2008 On 8 July 2008 the Australian Fair Pay Commission (the AFPC) handed down its 2008 wage setting decision which takes effect on the first pay period on or after 1 October 2008.
The AFPC awarded an increase of approximately $21.66 per week to employees employed by a constitutional corporation.
The USU maintains that councils are not constitutional corporations, that workers in local government are engaged under the Local Government (State) Award 2007 and not on Australian Fair Pay and Classification Scales and that there is no legal requirement for councils to pay the $21.66 per week increase.
Which rates of pay apply to constitutional corporations? Following the AFPC’s latest decision, the Workplace Authority published an updated Summary Pay Scale for the purported Notional Agreement Preserving the Local Government (State) Award (the NAPSA).
The Summary Pay Scale sets out rates of pay for employees of constitutional corporations in NSW local government. These rates of pay are not legally enforceable. They are only to be used as a guide for employers in local government who believe they are constitutional corporations and covered by the federal industrial relations system.
AFPC Increase and the Award If your council insists that it must pay you the AFPC increase, ensure that the rates of pay you receive are equal to those due to you under the Award. Refer USU Update 2 July 2008 for information on the USU’s Local Government Wages Campaign.
Councils can enter into a Council Agreement with the USU which ensures that you receive the rates of pay and allowances provided for under the Award, whilst allowing Councils to absorb or offset any AFPC increase it pays against any Award increase due under a Council Agreement.
Through absorption of AFPC increases, the Council Agreement ensures that you receive what you are owed under the Award, whilst allowing Council to meet any obligations it believes it may have as a result of the AFPC wage setting decision.
