Published Thursday, 07 February, 2008 at 12:55 PM
Minister for Main Roads and Local Government
The Honourable Warren Pitt
Minister asks Aramac Shire Council to explain pay decision
Local Government Minister Warren Pitt has issued a show-cause notice to Aramac Shire Council about its decision last month to grant council staff an 8 per cent pay rise.
Mr Pitt has written to the council, advising that he intends seeking the Governor-in-Council’s approval to revoke the council’s January 30 decision.
The decision was made just days before the council went into caretaker mode in the lead-up to local government elections on March 15, when Aramac will amalgamate with Barcaldine and Jericho shire councils to form the new Barcaldine Regional Council.
The pay increase is due to take effect on February 11.
“The council advised the Department of Local Government on 31 January that it had decided, at its January 30 meeting, to award its employees a pay increase of 8 per cent,” he said.
“When an explanation for this decision was sought, the council advised that the increase was awarded to avoid ‘significant inequities’ in the pay rates between Aramac and Barcaldine employees.
“I believe this decision is completely inappropriate and not in the interest of the ratepayers of the existing Aramac council or the future Barcaldine Regional Council.
“The pay rise was not included in the council's original 2007–08 budget, its operational plan or any of its usual business planning processes.
“Under the local government reform process, amalgamated councils are required to develop new enterprise bargaining agreements for all staff within one year of amalgamation.
“This is the proper process for addressing perceived inequities.
“Decisions on pay rises – particularly when they are of this magnitude – should be left to the new regional council.
“In the meantime, the pay and conditions of all council staff, apart from CEOs, are guaranteed under the State Government’s Workforce Transition Code of Practice.”
The council has until February 14 to provide a written response to the show-cause notice.
Media contact: Minister Pitt’s Office 3227 8819
Mr Pitt has written to the council, advising that he intends seeking the Governor-in-Council’s approval to revoke the council’s January 30 decision.
The decision was made just days before the council went into caretaker mode in the lead-up to local government elections on March 15, when Aramac will amalgamate with Barcaldine and Jericho shire councils to form the new Barcaldine Regional Council.
The pay increase is due to take effect on February 11.
“The council advised the Department of Local Government on 31 January that it had decided, at its January 30 meeting, to award its employees a pay increase of 8 per cent,” he said.
“When an explanation for this decision was sought, the council advised that the increase was awarded to avoid ‘significant inequities’ in the pay rates between Aramac and Barcaldine employees.
“I believe this decision is completely inappropriate and not in the interest of the ratepayers of the existing Aramac council or the future Barcaldine Regional Council.
“The pay rise was not included in the council's original 2007–08 budget, its operational plan or any of its usual business planning processes.
“Under the local government reform process, amalgamated councils are required to develop new enterprise bargaining agreements for all staff within one year of amalgamation.
“This is the proper process for addressing perceived inequities.
“Decisions on pay rises – particularly when they are of this magnitude – should be left to the new regional council.
“In the meantime, the pay and conditions of all council staff, apart from CEOs, are guaranteed under the State Government’s Workforce Transition Code of Practice.”
The council has until February 14 to provide a written response to the show-cause notice.
Media contact: Minister Pitt’s Office 3227 8819