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Ben Kruse

From the Secretary's
Desk
News > Local Government > Protect 08
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Great news for Australian council workers and for employees under our State Award

By Ben Kruse
USU General Secretary
Aug 20, 2008
The Etheridge decision has come down with a single Justice of the Federal Court finding that this council, under the relevant circumstances, was NOT A CONSTITUTIONAL TRADING CORPORATION and COULD NOT be covered by a federal WorkChoices agreement.

The rationale for the decision is largely consistent with the view held by the USU since the introduction of WorkChoices in 2006 that the activities of councils are predominately associated with public benefit  objectives and lack the essential qualities of trading corporations.  
 
The decision has significant implications for local councils in NSW, including the inference that the Local Government (State) Award remains the principal instrument for determining wages and conditions employees engaged by NSW councils.
 
This is great news for Australian council workers and for employees under our State Award.
 
The decision is likely to appealed to the High Court. Nevertheless the decision will have a major impact on the protection of state IR systems, particularly as they apply to local government. The Federal and State Governments are now much more likely to have to enter into an inter-governmental agreement in developing a national IR system.
 
In theory the Etheridge decision is binding only as regards the historical situation for one Council in Queensland. Until a High Court appeal is determined the current status of the federal IR legislation will continue to remain uncertain. The USU is pressing the NSW State Government to overcome this uncertainty by passing interim decorporatisation legislation pending the excising of the local government from the federal Workplace Relations Act and the settlement of an intergovernmental agreement concerning the establishment of a national industrial relations system.
 
The USU shall seek a meeting with the Local Government and Shires Associations to discuss the implications of the decision for NSW councils.
 
A full update will be published by the USU within the next few days. The decision can be downloaded HERE.



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Last Updated: Nov 14th, 2008 - 16:28:13

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