2025 WAIRC 00224
COMMISSION TO MAKE ORDERS AS TO TERMS OF THE CITY OF GREATER GERALDTON INDUSTRIAL AGREEMENT 2023 - 2026
WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

CITATION : 2025 WAIRC 00224

CORAM
: COMMISSIONER T KUCERA

HEARD
:
TUESDAY, 3 DECEMBER 2024, WEDNESDAY, 4 DECEMBER 2024, THURSDAY, 5 DECEMBER 2024

DELIVERED : MONDAY, 7 APRIL 2025

FILE NO. : APPL 124 OF 2024

BETWEEN
:
CITY OF GREATER GERALDTON, WESTERN AUSTRALIAN MUNICIPAL, ADMINISTRATIVE, CLERICAL AND SERVICES UNION OF EMPLOYEES
Applicant

AND

(NOT APPLICABLE)
Respondent

CatchWords : Industrial Law (WA) – City of Greater Geraldton Industrial Agreement 2023 - 2026 – Application for Commission to make orders as to specified matters under s 42G – Section 42G Principles – Cost of living increases – Competitive rates of pay – Staff attraction and retention – Employer capacity to pay
Legislation : Industrial Relations Act 1979 (WA)
Result : Orders to issue
REPRESENTATION:

COUNSEL:
FIRST APPLICANT : MR C BEETHAM, OF COUNSEL
SECOND APPLICANT : MR C FOGLIANI & MR Z DOHERTY, OF COUNSEL

Case(s) referred to in reasons:
City of Albany, Western Australian Municipal, Administrative, Clerical and Services Union of Employees [2024] WAIRC 00210
City of Swan, Local Government, Racing and Cemeteries Employees Union (WA) and Western Australian Municipal, Administrative, Clerical and Services Union of Employees [2024] WAIRC 00989

Reasons for Decision
TABLE OF CONTENTS
Introduction 4
Section 42G principles 4
Background to the matters in dispute 6
Previous Industrial Agreements 7
The new industrial agreement 7
Current Position 9
The Arbitration 10
The Issue to be Arbitrated. 10
Economic evidence 10
Cross Examination of Mr Morey 14
Evidence of Wayne Wood 15
Evidence of Joel Hoddy 17
Evidence of Christopher McKay 20
Evidence of Cosimo Calabrese 21
Evidence of Joey Van Lierop 23
Evidence of Esper Windsor 24
Evidence of Diane McDonald 25
Evidence of Cassandra Young 26
The Respondent’s Evidence 27
Cross Examination of Mr Radalj 32
WASU’s Outline of Submissions 33
COGG’s Submissions 36
Observations about the evidence 37
Consideration 38
Historical position 38
The COGG’s Financial position 39
The interests of the employees 40
The Interests of the COGG 40
The interests of the community 41
Comparison with the City of Albany 42
The WASU’s wage proposal 42
The COGG’s wage proposal 43
The timing of the increases with the COGG’s Budget 43
Conclusion 44

Introduction
1 The City of Greater Geraldton (COGG) and the Western Australian Municipal, Administrative, Clerical and Services Union of Employees (WASU) have reached agreement on all but one of the terms of a proposed industrial agreement to apply to its workforce.
2 The title of the proposed industrial agreement is the City of Greater Geraldton Industrial Agreement 2023 (new agreement). The new agreement has a three-year term, commencing on the date it is registered by the Commission and expiring on 30 June 2026.
3 The COGG’s employees to which the terms of the new agreement apply are engaged in both ‘inside’ and ‘outside’ classifications. The employees who work in the ‘inside’ roles, include the COGG’s administrative and library staff.
4 The ‘outside roles’ include employees who maintain parks, pathways, shelters and other facilities in Geraldton, Mullewa and other localities within the COGG’s boundaries.
5 The COGG and the WASU have agreed to the payment of a 6 percent wage increase in the first year of the new agreement to apply from 1 July 2023.
6 For the second and third years of the new agreement, the COGG and the WASU were not able to agree upon the quantum of the wage increases that will apply. As a result, the only matter that remains outstanding between the parties is the amount by which wage rates under the new agreement are to be increased, effective on 1 July 2024 and 1 July 2025.
7 To break the impasse over this issue, the COGG and the WASU (parties) have applied to the Commission under s 42G of the Industrial Relations Act 1979 (IR Act) to register the new agreement in the terms the parties have agreed, together with any other provision the Commission may order on the quantum of the pay increases to apply in the second and third years of the new agreement.
8 In the reasons that follow, I have determined the quantum of the percentage increases that are to apply from 1 July 2024 and 1 July 2025.
Section 42G principles
9 Section 42G provides:
(1) This section applies where —
(a) negotiating parties have reached agreement on some, but not all, of the provisions of a proposed agreement; and
(b) an application is made to the Commission for registration of the agreement as an industrial agreement, the agreement to include any further provisions specified by an order referred to in subsection (2); and
(c) an application is made to the Commission by the negotiating parties for an order as to specified matters on which agreement has not been reached.
(2) When registering the agreement, the Commission may order that the agreement include provisions specified by the Commission.
(3) An order referred to in subsection (2) may only be made in relation to matters specified by the negotiating parties in an application referred to in subsection (1)(c).
(4) In deciding the terms of an order, the Commission may have regard to any matter it considers relevant.
(5) When an order referred to in subsection (2) is made, the provisions specified by the Commission are, by force of this section, included in the agreement registered by the Commission.
(6) Despite section 49, no appeal lies from an order referred to in subsection (2).
10 The approach to be taken by the Commission in an application to resolve a dispute under s 42G and the principles to be applied, were recently summarised in two recent decisions Senior Commissioner Cosentino issued:
i. City of Albany, Western Australian Municipal, Administrative, Clerical and Services Union of Employees 2024 WAIRC 00210 (City of Albany); and
ii. City of Swan, Local Government, Racing and Cemeteries Employees Union (WA) and Western Australian Municipal, Administrative, Clerical and Services Union of Employees 2024 WAIRC 00989 (City of Swan).
11 I have extracted below the summary of these principles as set out by the Senior Commissioner in City of Swan at [5] – [7].
5. In s 42G proceedings, there is no onus in the usual sense. The parties put their respective cases and the Commission decides the matter in accordance with equity and good conscience: Western Australian Police Union of Workers v Commissioner of Police [2021] WAIRC 00047; (2021) 101 WAIG 293 (WA Police Union of Workers v Commissioner of Police) at [14].
6. However, the assessment of the competing proposals advanced by each party requires that there be a firm evidentiary basis to justify any orders the Commission makes. Though the Commission is not bound by the rules of evidence, this does not mean the Commission is able to act without any evidence. This has been a longstanding principle of industrial arbitration. In Re Tramways Employees (Melbourne) Award 1949 [1951] CthArbRp 528; (1951) 72 CAR. 26, the Commonwealth Court of Conciliation and Arbitration stated at 27 - 28:
Although the Court is not bound by rules of evidence, this had never been held to mean that the Court would act without evidence. If a tribunal were to so act, obvious injustices and insecurities could result...
The industrial system has been functioning for so long that even an inexperienced advocate should know that an industrial claim is not to be had for the asking, but is necessarily dependent upon the quality of the relevant evidence produced...
7. In determining a dispute under s 42G, the Commission:
a. has a broad discretion to reach a conclusion based on the evidence before it;
b. can and should consider a range of elements including the IR Act’s objects set out in s 6, and any other matter it considers relevant;
c. is subject to the requirements of s 26; and
d. is not bound to take into account the Statement of Principles made under s 50A(1)(d)(i) of the IR Act:
Fire and Emergency Services Authority of Western Australia and Anor v (Not Applicable) [2007] WAIRC 00469; (2007) 87 WAIG 1283 at [377]; WA Police Union of Workers v Commissioner of Police at [37], [61].
12 Having described the principles that I am required to follow when deciding this matter, it is necessary to provide in order:
i. some further background to the matters giving rise to the dispute;
ii. a description of the parties’ evidence; and
iii. a summary of the parties’ submissions on the quantum of the increases the Commission should order.
Background to the matters in dispute
13 The COGG includes the City of Geraldton, which is in the Mid West of Western Australia (WA). As a result of council amalgamations, the COGG also takes in the town of Mullewa and the localities of Greenough and Walkaway. Covering an area of 12,625 square kilometres, land in the COGG, is used for residential, commercial, industrial, and agricultural purposes: Strategic Workforce Plan 2019-2022 (Strategic Workforce Plan) p 1.
14 The Mid West is one of nine regions that make up WA. The region extends approximately 200 km north and south of the administrative centre of Geraldton as well as inland to the border of the Goldfields-Esperance Region, an area of close to 472,300 square kilometres: Strategic Workforce Plan p 1.
15 More than 41,000 people live in the COGG. While mining is now the main industry in the Mid West, other significant industries include agriculture, tourism, and fishing. Geraldton, which is a port town, also exists as regional service centre for the entire Mid West Region: Strategic Workforce Plan p 1.
16 More than half of the total population in the Mid West region lives in Geraldton. It is estimated that, 16,653 people work in the COGG, which is 66.26% of the 25,132 people who work in the Mid West Region: Strategic Workforce Plan p 1.
17 The COGG’s total workforce is comprised of close to 400 people, including 285 permanent employees (full time and part time) 88 casual and 34 temporary contract staff. The COGG’s workforce is comprised of 54% females and 46% males. The ‘outside’ workforce is predominately male and much older: Strategic Workforce Plan p 5.
18 Women occupy most of the administrative positions within the COGG. In 2019 it was estimated that as many as 25% of the COGG’s employees will be eligible for retirement, the bulk of whom work in ‘outside’ roles: Strategic Workforce Plan pp 5-7.
19 The COGG has acknowledged that if it does not focus on career and succession planning, the COGG could encounter a situation where the service delivery to its communities and customers, may be impacted due to a loss of corporate knowledge and experience: Strategic Workforce Plan p 10.
20 In addition to the challenge an ageing workforce presents, the COGG has acknowledged that it faces other challenges in attracting and retaining staff including:
i. competition with the mining and construction industries;
ii. higher wages that are paid to, employees above the 26th parallel; and
iii. incentives and allowances that are being offered by, local councils further north. (see Strategic Workforce Plan p 10).
21 The COGG has accepted that attracting and retaining employees to work in the COGG’s Mullewa District Office, which is approximately 100km east of Geraldton, presents its own unique challenges: Strategic Workforce Plan p 10.
Previous Industrial Agreements
22 The new industrial agreement will be the first industrial instrument between the WASU and the COGG, following the transition of industrial regulation for the local government sector, from the federal to the state industrial relations system. This happened on 1 January 2023.
23 The previous enterprise agreements that were made in the period 2008-2023 were approved by the Fair Work Commission under the provisions of the Fair Work Act 2009 (previous EBAs). During this time the COGG and the WASU made five EBAs as follows:
· The City of Geraldton-Greenough Combined Union Collective Agreement 2008;
· The City of Greater Geraldton Enterprise Collective Agreement 2012;
· The City of Greater Geraldton Enterprise Agreement 2015-2018;
· The City of Greater Geraldton Enterprise Agreement 2018-2021; (2018 Agreement)
· The City of Greater Geraldton Enterprise Agreement 2021-2023 (2021 Agreement).
24 The previous EBAs are relevant in as much as they not only demonstrate the existence of a long-standing industrial relationship between the COGG and the WASU, but they also provide an important historical context, to the way in which the parties have approached the payment of wage increases under the previous EBAs.
The new industrial agreement
25 It is estimated that the new agreement will apply to approximately 386 employees on registration: cl 14.3.
26 The new agreement will operate from the date of its registration and have a nominal expiry date of 30 June 2026: cl 1.14. It is agreed the pay increases arbitrated in these proceedings will take effect on 1 July 2024 and 1 July 2025: cl 7.2.3.
27 The annual salaries to be paid to the employees who are covered by the agreement depend on an employee’s classification level. There are ten classification levels in the classification structure which is set out under Appendix 11 of the new agreement. Within the ten levels of the classification structure, there are also a series of sub-classifications/steps, one to four: Appendix 11.
28 Level 1 is the only classification in the structure that has six steps. This is because Level 1 is an ‘entry level classification’ in respect of which the salaries to be paid are determined by an employee’s age.
29 Appendix 10 of the new agreement provides a description of the duties, employees must be competent to perform, at each of the respective levels in the classification structure. When classifying an employee, the COGG is required to have regard to an employees’ skills, performance and training: cl 7.3.
30 There is a minimum salary and a maximum salary for each classification, with the maximum salary for the classification being below the minimum salary for the next higher classification. Progression from minimum salary under a classification to the maximum occurs as an employee climbs each step of the classification structure.


1st Year Effective
1st July 2023
1st Year Effective
1st July 2023
2nd Year Effective
1st July 2024
2nd Year Effective
1st July 2024
3rd Year Effective
1st July 2025
3rd Year Effective
1st July 2025
LEVEL/STEP
As at
30 June 2022
6% Increase
Hourly Rate
To be determined
Hourly Rate
To be determined
Hourly Rate
LEVEL 1
Salary
Salary
Hourly Rate
Salary
Hourly Rate
Salary
Hourly Rate
Step 1 (16 yrs
and under)

$44,973

$47,671

$24.1252






Step 2 (17 yrs)
$46,885
$49,698
$25.1509




Step 3 (18 yrs)
$49,657
$52,636
$26.6379




Step 4 (19yrs)
$52,439
$55,585
$28.1302




Step 5 (20yrs)
$55,196
$58,508
$29.6092




Step 6 (Adult)
$57,276
$60,713
$30.7250




LEVEL 2
Salary
Salary
Hourly Rate




Step 1
$59,154
$62,703
$31.7324




Step 2
$60,160
$63,770
$32.2721




Step 3
$61,960
$65,678
$33.2377




Step 4
$63,843
$67,674
$34.2478




LEVEL 3
Salary
Salary
Hourly Rate




Step 1
$65,720
$69,663
$35.2547




Step 2
$66,815
$70,824
$35.8421




Step 3
$67,909
$71,984
$36.4289




Step 4
$69,455
$73,622
$37.2582




LEVEL 4
Salary
Salary
Hourly Rate




Step 1
$71,206
$75,478
$38.1976




Step 2
$72,429
$76,775
$38.8536




Step 3
$73,473
$77,881
$39.4137




Step 4
$75,059
$79,563
$40.2644




LEVEL 5
Salary
Salary
Hourly Rate




Step 1
$76,998
$81,618
$41.3046




Step 2
$78,116
$82,803
$41.9043




Step 3
$79,015
$83,756
$42.3866




Step 4
$80,511
$85,342
$43.1891




LEVEL 6
Salary
Salary
Hourly Rate




Step 1
$81,599
$86,495
$43.7727




Step 2
$83,602
$88,618
$44.8472




Step 3
$84,971
$90,069
$45.5816




Step 4
$86,560
$91,754
$46.4340




LEVEL 7
Salary
Salary
Hourly Rate




Step 1
$88,132
$93,420
$47.2773




Step 2
$89,893
$95,287
$48.2220




Step 3
$91,345
$96,826
$49.0009




Step 4
$92,383
$97,926
$49.5577




LEVEL 8
Salary
Salary
Hourly Rate




Step 1
$94,248
$99,903
$50.5581




Step 2
$95,700
$101,442
$51.3370




Step 3
$97,150
$102,979
$52.1149




Step 4
$98,603
$104,519
$52.8943




LEVEL 9
Salary
Salary
Hourly Rate




Step 1
$101,490
$107,579
$54.4430




Step 2
$103,088
$109,273
$55.3002




Step 3
$104,967
$111,265
$56.3082




Step 4
$106,844
$113,255
$57.3151




LEVEL 10
Salary
Salary
Hourly Rate




Step 1
$109,391
$115,954
$58.6814




Step 2
$111,939
$118,655
$60.0482




Step 3
$114,487
$121,356
$61.4151




Step 4
$117,035
$124,057
$62.7819





31 The new agreement makes provision for employment on a full-time, part-time and casual basis. In addition, the agreement also makes provision for employment on the terms of specific term contracts which is: cl 2.2.
32 Full time employees are required to work an average of 76 ordinary hours over a two-week cycle. The new agreement makes provision for the payment of overtime as time in lieu. Time off in lieu is to be taken at the equivalent hours of overtime worked: cl 3.1.
33 The new agreement contains provisions for flexible working arrangements and compressed working weeks. These provisions have been included in the agreement as part of a sweet of terms described as ‘Work/Life Balance Initiatives’: Section 4 of the new agreement.
Current Position
34 Most, if not all of the conditions that are contained in the 2021 Agreement, will continue to apply under the new agreement. Although the 2021 Agreement reached its nominal expiry date on 30 June 2023, by operation of s 41(6) of the IR Act, it continues to apply pending the issuance of a final decision this matter.
35 Following the expiry of the 2021 Agreement, the COGG has paid two wage increases to the employees who will be covered by the new agreement. The first of these was the 6% wage increase the parties have agreed will apply in the first year of the new agreement. The COGG paid this increase on and from 1 July 2023.
36 The second is a 4% wage increase, which the COGG says should apply in the second year of the new agreement. This was paid by the COGG on and from 1 July 2024.
37 It is not in dispute the COGG has decided to pay its employees who were previously classified as Level 2s under the 2021 Agreement, at the Level 3 Step 1 rate. The COGG says this occurred from the first full pay period on or after 1 July 2023.
The Arbitration
38 Lawyers Cory Fogliani and Zack Doherty represented the WASU in this matter. The COGG was represented by Barrister Cheyne Beetham.
39 The hearing of the application was conducted across three dates, Tuesday 3 – Thursday 5 December 2024. The COGG’s witnesses appeared in person. The WASU’s witnesses in the main appeared by video link.
40 The Commission received submissions in writing from both parties. The parties’ representatives were also given an opportunity to make oral submissions during hearing. Upon the completion of the parties’ evidence and submissions, the Commission’s decision was reserved.
The Issue to be Arbitrated.
41 In its Outline of Submissions (COGG Submissions), the COGG helpfully produced a table setting out the respective difference in the parties competing positions on the amount of the percentage wage increases to apply, in the second and third years of the new agreement:
Year
COGG
WASU
From 1 July 2024
4%
6%
From 1 July 2025
3%
6%

42 For ease of reference, I will respectively define the two different outcomes sought by the parties to the arbitration as the COGG wages proposal and the WASU wages proposal.
43 Having now described the issue to be determined, I will first provide a summary of the parties’ evidence in the matter, which includes information on the state of the WA economy.
Economic evidence
44 Expert evidence on the state of the WA economy, was provided by Mr Aaron Morey who is the Chief Economist with the Chamber of Commerce and Industry of WA (CCIWA). He prepared a report with attachments, which was admitted into evidence as Exhibit R1: (Morey Report).
45 Although Mr Morey was called by the COGG and in order, was the fourth witness in the hearing, it is useful to provide a summary of his evidence first. This is because the effects of the economic trends and the data that were commented upon in Mr Morey’s evidence, were very much felt and experienced by the other witnesses in the case.
46 In his report, Mr Morey provided his opinion on the economic data the Commission should have regard to, when determining the quantum of the wage increases to be paid in the last two years of the new agreement.
47 Commenting first on the overall state of the WA economy, Mr Morey noted the WA domestic economy had grown by 5.3% in annual average terms over 2023-24, which was greater than any other state. He observed that the WA labour force had continued to grow, reaching a record size in September 2024: (Morey Report para 1).
48 Mr Morey opined that the strong performance of the WA economy, had been underpinned by strong business investment, that came on the back of some large-scale resources projects that are ramping up. He also attributed WA’s economic results to government investment and the performance of the major WA iron producers, which he noted have been operating at close to capacity: (Morey Report para 2).
49 Despite the performance of the WA economy Mr Morey noted that household consumption ‘has started to slow’. He said this had occurred gradually over the past two years because of the combined effects of inflation and elevated interest rates, which had forced households to reduce their spending: (Morey Report para 3).
50 On the issue of housing, Mr Morey observed the WA housing market remained tight. He noted that rents have increased by 11.7 % over the last 12 months and house prices have increased 24.1% over the same period. Mr Morey also noted that rental vacancy rates continue to remain low, sitting at 1.6% as of September 2024: (Morey Report para 4).
51 In his report, Mr Morey stated that inflationary pressures continue to affect the WA economy. He noted that inflation as of September 2024, sits at 3.8%. Mr Morey said that while this is below the rate of 8.3%, that was recorded in December 2022, the inflation rate remains above the Reserve Bank of Australia (RBA) target range of 2-3%: (Morey Report para 5).
52 Mr Morey confirmed that interest rates remain in what he described as ‘restrictive territory’, with the cash rate sitting at 4.35%, the highest since 2011. He said that while inflationary pressure has eased, households and business would continue to feel the pressure of higher costs: (Morey Report para 5).
53 Mr Morey predicted that economic growth in WA, is expected to slow. He attributed this to the effects of higher interest rates. Mr Morey said that he expected that household consumption would pick up by 2025-2026. He anticipates this will occur from a cut in interest rates and reduced inflation, which he considers will increase household purchasing ability: (Morey Report para 6).
54 Mr Morey also expects that in 2025-2026, investment in housing will improve. He suggested current difficulties with labour shortages and other pressures would subside. Mr Morey is of the view the risks to WA’s economic fortunes lie in a slowdown to the Chinese property sector, war in the Middle East and persistent inflation: (Morey Report para 7).
55 Mr Morey said CCIWA does not provide an economic forecast specific to the Midwest region: (Morey Report para 11). He said his insight on what is happening in the region, largely comes from CCIWA Business Confidence Survey Report for September 2024 (CCIWA Business Confidence Survey).
56 From this survey, Mr Morey observed that businesses in the Midwest were more confident. He identified the barriers that businesses had reported were the most likely to affect their growth: rising operating costs and a shortage of skilled labour: (Morey Report para 13).
57 Mr Morey provided data on wage growth in the Midwest region. I have extracted below, the table from the Morey Report that he relies on to suggest that wage growth in the COGG has been greater than in WA generally, in all years over the period 2015-2024, except for 2021, 2022 and (subject to confirmation) 2024.
58 The two measures he used were changes in the Wage Price Index All Industries WA (WPI) and the Wage Price Index for the WA Public Sector (Public Sector WPI).



Year

WA All Industries WPI


WA Public Sector WPI

WA All Industries WPI Growth

WA Public Sector WPI Growth
City of Greater Geraldton Wage Growth
2015
123.1
126.9
2.1%
3.1%
2.5%
2016
125.3
130.7
1.8%
3.0%
2.5%
2017
127
133.4
1.4%
2.1%
2.5%
2018
128.9
135.1
1.5%
1.3%
1.5%
2019
130.9
136.9
1.6%
1.3%
1.8%
2020
133
138.4
1.6%
1.1%
1.8%
2021
135.1
139.7
1.6%
0.9%
1.5%
2022
138.7
141.3
2.7%
1.1%
1.5%
2023
144.5
146.3
4.2%
3.5%
6.0%
2024
150.5
150.9
4.2%
3.1%
4.0%
Cumulative growth 2015-2024



24.8%

22.6%

28.6%

59 In addition to this table, Mr Morey provided data on the cumulative wages growth that was forecast for the period 2023-2026 (the life of the new agreement). He said the wage increases proposed by the COGG are greater than the cumulative wage growth forecast by both the WA Treasury and CCIWA.
60 I have extracted this table below:




Year


WA Treasury Forecast



CCIWA Forecast

City of Greater Geraldton Proposed Wage Increases

WASU Proposed Wage Increases
2023-2024
4.2%
4.2%
6.0%
6.0%
2024-2025
3.75%
3.75%
4.0%
6.0%
2025-2026
3.5%
3.25%
3.0%
6.0%
Cumulative growth 2023-24 to 2025-26

11.8%

11.6%

13.5%

19.1%

61 Mr Morey included information in his report on movements in the Consumer Price Index (CPI). He noted that CPI measures quarterly changes in the price of a basket of goods and services, which account for a high proportion of household expenditure: (Morey Report para 25).
62 He said the metric for CPI commonly relied upon in WA is All Groups CPI - Perth. He said this this measure is traditionally used in economic forecasting by WA Treasury and CCIWA and it provides a better representation of the price changes faced by the average WA household when compared with the national CPI figure: (Morey Report para 35).
63 Mr Morey acknowledged that CPI is used to show the rate of inflation: (Morey Report paras 36-38). I have extracted the table below from Mr Morey’s report on the movements in CPI in the period 2015 to 2024.

Year

Australia CPI

Perth CPI
Australia CPI Annual Growth
Perth CPI Annual Growth
2015
107.5
107.7
1.5%
1.2%
2016
108.6
108.2
1.0%
0.5%
2017
110.7
109
1.9%
0.7%
2018
113
110.2
2.1%
1.1%
2019
114.8
112
1.6%
1.6%
2020
114.4
112.1
-0.3%
0.1%
2021
118.8
116.8
3.8%
4.2%
2022
126.1
125.4
6.1%
7.4%
2023
133.7
131.5
6.0%
4.9%
2024
138.8
137.6
3.8%
4.6%

64 Mr Morey observed that since 2021, CPI has increased at a greater rate than wages have: (Morey Report para 41). His report included a table that illustrated this point, which I have extracted below:


Year
WA All Industries WPI Growth
WA Public Sector WPI Growth


WA CPI Growth
2015
2.1%
3.1%
1.2%
2016
1.8%
3.0%
0.5%
2017
1.4%
2.1%
0.7%
2018
1.5%
1.3%
1.1%
2019
1.6%
1.3%
1.6%
2020
1.6%
1.1%
0.1%
2021
1.6%
0.9%
4.2%
2022
2.7%
1.1%
7.4%
2023
4.2%
3.5%
4.9%
2024
4.2%
3.1%
4.6%

65 Mr Morey stated that over the past two years, cost of living pressures have increased over the past two years, throughout WA. He said that high levels of inflation have increased the prices of many essential goods and services at a faster pace than wages have grown, meaning that households have been able to purchase less than they could two years ago, or have been required to draw down on their savings, to maintain the same standard of living: (Morey Report para 44).
66 Mr Morey said that while there is no definite measure for the cost of living, a qualitative assessment may be made using the collective forecasts of indicators including CPI and WPI. Mr Morey suggested that with inflation expected to fall, a likely cut in interest rates and with wages growth expected to remain steady, it was anticipated the current cost of living pressures would ease over the coming years: (Morey Report paras 46-48).
67 Mr Morey predicted in his report that the significant growth in house prices and rents had shown signs of easing. He suggested a reduction in the growth of house prices was likely to continue over the coming years, which he predicted would also ease cost of living pressures: (Morey Report para 49).
68 When commenting on the cost of rents and housing affordability, Mr Morey noted the median weekly rent in Perth in 2023 was $595 for houses and $550 per week for units. He said this compares with $420 per week for houses and $270 per week for units in Geraldton. For the Mid West Region, he observed the median weekly rent for houses in 2023 was $430 and $292 for units, both of which are lower than in Perth: (Morey Report paras 55-56).
69 In his report Mr Morey suggested that while rental prices were expected to increase over the coming years, it is likely to be at a slower pace than in 2023. He noted that in the year to October 2024, rents had increased 9.4%, which was down from 13.5% in March 2024: (Morey Report para 59).
70 Despite this, Mr Morey considers that as the increase in rental prices remains higher than wage growth, it is likely that rental affordability will continue to worsen across all regions in the next year. Mr Morey said that as long as rent price growth remains stronger than wage growth, rental affordability will continue to worsen: (Morey Report para 66).
71 Mr Morey was asked by the COGG to comment on the quantum of the wage increases the COGG had proposed for the last two years of the new agreement. In a separate Response to Request for Clarification (Clarification Report) he said the CCIWA’s forecast for CPI growth in 2024-25 is 3.25% which is greater than the 3% proposed increase: (Clarification Report para 3).
72 He noted the WA Treasury forecast for the same period is 3%, the same as the increase the COGG has suggested should apply, in the final year of the new agreement: (Clarification Report para 3).
Cross Examination of Mr Morey
73 Mr Morey was briefly cross examined by Mr Fogliani about the contents of his report and the attachments, including the CCIWA Business Confidence Survey and the CCIWA Regional Pulse Business Survey (Regional Pulse).
74 Mr Morey accepted the respondents to the Regional Pulse, viewed the availability of skilled labour as a significant barrier to business. He also accepted most of the businesses in the Mid West, are expecting their labour costs to increase: (ts p 50).
75 Mr Morey was challenged about his view that interest rates were likely to fall. He stood by his assessment, which he said is based on a consensus of views amongst professional economists and those involved in setting the pricing in financial markets: (ts p 55).
76 Mr Morey was questioned about the WPI data that was included in his report. He accepted that WPI was not specifically measured for Geraldton and that WPI is only measured at the state and national level: (ts p 56).
77 When asked if WPI differentiated between different types of workers or job roles within an organisation, Mr Morey answered by saying WPI was measured by reference to a basket of different job roles: (ts p 56).
78 Mr Morey agreed that WPI does not factor in the cost of living experienced by workers. He said WPI only measures movements in wage levels: (ts p57).
79 Mr Morey was questioned about, the contents of the CoreLogic Regional Market Update – August 2024 (CoreLogic Report). When asked if he agreed the cost of rents in Geraldton of $498 per week, that appears in the CoreLogic Report was accurate, Mr Morey said he wasn’t sure if this was an average of houses and units. He did however agree that rents had increased annually by 13.5% and 65.1% over the last 5 years: (ts p 59).
80 Mr Morey was asked if he was prepared to accept, that the growth in rental prices was three times higher than the CCIWA’s WPI projection for 2023-2024 of 4.2%. He agreed with this. Mr Morey also accepted that pressure on rental affordability in Geraldton remains an issue: (ts p 60).
81 When questioned about the CCIWA Business Confidence Survey Report for September 2024, (CCIWA Business Confidence Survey) Mr Morey agreed with conclusions suggesting that for the majority of people in WA, living standards have stagnated and that the high cost of living continues to place a strain on household cashflows. Mr Morey agreed that his reported concerns regarding the cost of living were consistent with the data contained in the CoreLogic Report: (ts p 60).
82 When questioned about skill shortages, Mr Morey agreed that businesses who responded to the CCIWA Business Confidence Survey, had accepted that one of the effective ways to address skill shortages is to upskill/train existing employees and to increase their wages: (ts p 62).
Evidence of Wayne Wood
83 The WASU called eight witnesses to provide evidence in support of its claim. The first of these was Wayne Wood, who is the WASU’s Branch Secretary.
84 Mr Wood said the WASU has approximately 150 members who work for the COGG. He said he had been involved in negotiations for enterprise agreements with the COGG going as far back as 2007/2008. He explained that enterprise agreements for the COGG have always applied to both ‘inside’ and ‘outside’ workers in the COGG: (ts pp 7-11).
85 Mr Wood gave evidence that in around 2005, the Shire of Mullewa, due to council amalgamations, was merged into the COGG. He said that because of the merger, the COGG has depots for ‘outside’ workers and offices for ‘inside’ employees, in both Geraldton and Mullewa: (ts p 12).
86 Mr Wood then went on to list some the places where the COGG’s employees work. He said the WASU has members in Geraldton who work ‘inside’ at the COGG Library and in the Visitor’s Centre and Art Gallery. He said the WASU has members who work in administration at the Geraldton Civic Centre (civic centre), which houses the COGG Council Offices: (ts p 12).
87 In addition to these ‘inside’ employees, the WASU has members who work at the Queens Park Theatre (theatre) and the aquatic centres in both Geraldton and Mullewa: (ts p 12).
88 Mr Wood gave evidence about changes that he had observed over time in both Mullewa and Geraldton. He said previously, Geraldton was more of an agricultural port that handled bulk grain for export. He said the port these days, is now more focused on mining exports: (ts p 14).
89 Mr Wood said he thought Geraldton was much busier now and there were far more workers in the town who are involved in the mining industry. He made similar observations about Mullewa, which he described as no longer just an agricultural town, but more involved in mining: (ts p 13).
90 Mr Wood said the WASU members who work at the COGG, had reported to him that because of the shift towards mining, it had become harder to rent a home in Geraldton. He said his members had told him the cost of renting in Geraldton had increased substantially and the town had a very competitive real estate market: (ts p 14).
91 Mr Wood said his members had reported that they had experienced price rises in the cost of fuel, rent and groceries. He said his members regularly told him that it had become much more difficult to pay their bills: (ts p 17).
92 On the issue of workload, Mr Wood said he had noted there were less people working at the COGG’s maintenance depots and at the civic centre. He said he was aware the COGG had lost staff and that replacing them had been difficult: (ts p 17).
93 Mr Wood said that attracting and retaining new staff has been a problem for the COGG. He said this has been building up over the last five to six years. Mr Wood said that WASU members had reported they were struggling with their workload. He also said some members had complained that they did not know if they had been correctly classified under the enterprise agreement: (ts pp 17-18).
94 Mr Wood said that while the COGG was probably looking to fill vacant positions to deal with employee workload, he said the employees who work there now, must still respond to the current demands of the council and the community: (ts p 18).
95 Mr Wood explained why the WASU was seeking a 6% increase per annum, for the second and third years of the new agreement. He said although the new agreement is quite reasonable and the WASU’s members were satisfied with the balance of its terms, when it came to pay increases, the members felt that over the last few years, they had been struggling to make ends meet: (ts p 19).
96 Mr Wood presented a table that that was accepted into evidence as Exhibit A6. The table shows the annual percentage wage increases under the enterprise agreements between the WASU and the COGG in one column, compared with CPI released for the March Quarter. A copy of this table is extracted below;

Increase Date
CGG Pay Increase

Perth CPI March
1/07/2008
5.50%
4.30%
1/07/2009
4.50%
2.20%
1/07/2010
4.50%
3.40%
1/07/2011
4.50%
2.60%
1/07/2012
4.25%
1.90%
1/07/2013
4.00%
2.40%
1/07/2014
4.00%
3.10%
1/07/2015
2.50%
1.40%
1/07/2016
2.50%
0.70%
1/07/2017
2.50%
1.00%
1/07/2018
1.50%
0.90%
1/07/2019
1.80%
1.10%
1/07/2020
2.10%
2.10%
1/07/2021
1.50%
1.00%
1/07/2022
1.50%
7.60%
1/07/2023
6.00%
5.80%
1/07/2024
4.00%
3.40%

97 Mr Wood spoke about the wage increases under the 2018 and 2021 Agreements. He said the WASU had compromised on the quantum of the pay increases in these agreements because members did not want a repeat of redundancies that had occurred in or around 2015/2016: (ts p 19).
98 Mr Wood said that despite making concessions on the percentage wage increases that would apply to prevent any redundancies, he believed the WASU’s members, were struggling financially: (ts p 19).
99 He said that in negotiations for the new enterprise agreement, the WASU’s members wanted to secure a decent pay increase to deal with the cost of living. He said there was an anomaly in 2022 when, CPI increased by a large amount to 7.6%: (ts p 19).
100 Mr Wood said that in addition to rise in the cost of living, the WASU’s members who are paying off mortgages, had to contend with the increases in interest rates that occurred over a 12-month period, 2022 to 2023: (ts p 19).
101 Mr Wood explained the WASU had responded to these concerns by initially seeking wage increases of 8% per annum, which was later wound back to 6% for each year of the new agreement. He acknowledged the COGG’s agreement to a 6% increase in the first year of the new agreement did help members catch up with the cost of living: (ts p 19).
102 Mr Wood then spoke about the COGG wages proposal. He said the resolutions he received from his members confirmed that they did not believe the wage increases the COGG was offering were enough: (ts p 19).
103 Mr Wood was briefly cross examined by Mr Beetham, who appeared for the COGG. Mr Beetham questioned Mr Wood about Exhibit A6. He asked Mr Wood if it was correct to say, that except for the pay increase the COGG’s employees received in July 2022, each and every other pay increase the COGG had provided was either equal to or greater than CPI. Mr Wood agreed with this suggestion: (ts p 23).
104 When asked whether the CPI rise of 7.6% in 2022 was an anomaly when compared with the CPI for the other years in the table, Mr Wood agreed. Mr Wood said he thought the rise in CPI in the March 2022 quarter is what hurt employees the most: (ts p 23).
Evidence of Joel Hoddy
105 The WASU called evidence from four of its members who are employed by the COGG as ‘outside’ workers. The first of these was Joel Hoddy, who works for the COGG in its Parks and Infrastructure Department. He said he works in a team of two along with WASU member Joey Van Lierop, who also gave evidence in the hearing: (ts p 25).
106 Mr Hoddy, who is a carpenter by trade, is employed as a Parks Infrastructure Maintenance Worker/Leading Hand. He said he works on the upkeep and maintenance of the COGG’s infrastructure in its open parks and spaces: (ts p 25).
107 Mr Hoddy said he commenced in this position in early 2019 and is employed by the COGG on a full-time basis. He said his duties include maintaining 55 playgrounds and all of the shelters, park benches, barbecues, light poles, art installations, decks and walkways, which the COGG owns. Mr Hoddy said that he was required to maintain anything that was installed in any of the COGG’s parks or any open spaces: (ts p 26).
108 Mr Hoddy explained that in addition to maintaining these facilities, he was (except for major projects) responsible for their installation as well. Mr Hoddy said that during his work, he was constantly putting in new shelters, park furniture, showers and drinking fountains: (ts p 26).
109 Mr Hoddy described his work as ongoing and that he rarely pulled anything out that was not replaced. Mr Hoddy said the infrastructure in COGG parks and open spaces was always expanding and never decreasing: (ts p26).
110 Mr Hoddy said he was he was responsible for maintaining over 80 shelters in parks throughout the COGG. He said he conducts an annual audit of shelters and that he is responsible for maintaining them. Mr Hoddy said he conducts audits of playground equipment on a quarterly basis, which involves onsite inspections: (ts p 26).
111 Mr Hoddy described the work he does when making repairs or putting in new installations. He said he and his offsider will attend the site, measure up, obtain or prepare quotes on the costs of the work to be done, plan the logistics and order materials, which he said, must be authorised by his supervisor before the work can commence: (ts p 26).
112 Mr Hoddy said that in the last three years he had noticed that vandalism and graffiti had increased. He gave evidence to the effect that despite an increase in his workload, there had been no change to the size of his work crew. Mr Hoddy said he has always worked in a team of two: (ts p 26).
113 When asked about staff retention, Mr Hoddy said he that he had found the more skilled a worker was, the more likely it was they would move on. He said he was aware of several co-workers who had left employment at the COGG for better wages somewhere else: (ts p 27).
114 Mr Hoddy was asked about his previous employment. He said that before his work at the COGG, he had worked in the mining industry and in the residential housing construction sector. Mr Hoddy said he left the mining industry so he could spend more time at home with his family. He said he is married and is paying off a mortgage with his wife, who works as a nurse on a parttime basis: (ts p 29).
115 Mr Hoddy said that in or around 2021, he decided to look for extra work outside of his job with the COGG. He said that in addition to working at the COGG, he now works for a residential builder in Geraldton on weekends, after work and on his days off: (ts p 29).
116 Mr Hoddy said he took on extra work in 2021 when increases in the cost of living started to chew into his savings. He said he had to take out a loan to purchase a new car after his family vehicle broke down. Mr Hoddy gave evidence to the effect that he knew he was not going to be able to service the car loan and meet his and his wife’s day to day living expenses, on the salary he was receiving, so he decided to look for extra work: (ts p 29).
117 When asked about the impact this additional work has had on him, Mr Hoddy said it was ‘pretty crazy’ at first but he was able to utilise flexible work agreements that are in the 2021 Agreement to pick up extra work. Mr Hoddy said he purchased extra leave and described moving on to a ‘compressed hours schedule’ that allowed him to perform more hours when he was at work, in exchange for additional days off. Mr Hoddy said that he has been able to work for the builder on his days off: (ts p 29).
118 Mr Hoddy said that from around October 2021, he has made approximately $460 net per week from his extra job, in addition to the annual salary he receives from the COGG. He said this money just about services his car loan and has kept his and his wife’s heads, ‘above water’: (ts p 30).
119 Mr Hoddy said that his wife in addition to her work as a nurse, travels to Perth once a fortnight to care for her elderly mother. Mr Hoddy said their combined earnings after tax were close to $4,000 per fortnight. When asked about his earnings from the COGG, Mr Hoddy initially said that he is paid about $72,000 per annum: (ts p 32).
120 Mr Hoddy was asked about his mortgage repayments and how they had changed. He said his interest rates had nearly doubled, going up 4% since he started work at the COGG: (ts p 30).
121 Mr Hoddy gave evidence about his other living expenses. He said fuel, groceries, car servicing and other services in Geraldton were more expensive than in the Perth metropolitan area. Mr Hoddy said that without extra work, he was not sure whether he and his wife would have enough money to cover their living expenses: (ts p 30).
122 Mr Hoddy provided a wage slip in evidence that confirmed that he is employed as a Level 4, Step 2: (Exhibit A7). In addition to his payslip, Mr Hoddy provided copies of his mortgage statements from December 2020 and June 2024. Both statements were accepted into evidence and marked as exhibits: (ts p 28).
123 Mr Beetham asked Mr Hoddy a few clarifying questions in cross-examination but nothing of any real impart. Mr Hoddy confirmed the value of the facilities and infrastructure that he installed tended to be for items that were $5,000 or less in value. He said that installations above this amount were typically put in by contractors. Mr Hoddy confirmed that once a piece of infrastructure was installed by contractors, responsibility for its maintenance was passed onto his team: (ts p 31).
124 Mr Hoddy was questioned about the evidence he gave on his fortnightly earnings. He confirmed that his annual salary was more likely in the range of $79,000 per annum. Mr Hoddy also confirmed that he works an extra hour every day that allows him to take a day off each fortnight. On top of this, Mr Hoddy said he purchases an additional four weeks’ annual leave, which is deducted from his salary, which he uses in minimum weekly blocks: (ts pp 32-33).
125 Mr Hoddy explained that he uses the leave blocks he purchases so he can take time off to perform larger jobs for the residential builder he works for. He said he uses his days off on weekends and from his flexible work arrangements to perform work in his second job during the week: (ts p 33).
126 Mr Hoddy provided a table of expenses, which was accepted into evidence as Exhibit A10. Mr Hoddy said that when preparing his table of expenses, he went through most of his recent bills. Mr Hoddy’s mortgage statements reveal that in the period 31 December 2020 until 30 June 2024, his mortgage repayments increased from $1200 per month to $1698: (ts p 29).
127 Mr Hoddy’s list of fortnightly expenses, which did not include payments for power, insurance, council rates and other utilities, but listed expenses for mortgage repayments, groceries, car loan repayments, vehicle registration and servicing, came to $2660 per fortnight. (Exhibit A10).
128 Mr Hoddy’s payslip shows an amount of $517.98 being deducted from his salary, resulting in a taxable income of $2600.88 for the fortnight. After tax, his take home pay was $2050.88. While his payslip does not specify what the deduction is for and if it is made every fortnight, it does help me conclude that Mr Hoddy’s evidence regarding his and his wife’s combined income, is accurate.
129 When the evidence regarding Mr Hoddy’s earnings is compared with the evidence he gave regarding his household expenditure, it is reasonable to conclude that Mr Hoddy and his wife’s combined income is very close to matching the amount they would have to outlay on household expenses.
Evidence of Christopher McKay
130 Following Mr Hoddy’s testimony, the WASU called Christopher Mr McKay to give evidence. Mr McKay said he works as a leading hand in the COGG’s Horticulture Department on a full-time basis. He said he has been working at the COGG for approximately eight years. Mr McKay said he previously worked at the COGG as a horticulture maintenance officer for two years before being promoted to a leading hand: (ts p 35).
131 Mr McKay explained that his role requires him to maintain the COGG’s living spaces: parks, roundabouts, median strips and public access ways. Mr McKay said he is also involved in managing the COGG’s annual tree planting season. He said he supervises a team of approximately nine people: (ts p 35).
132 When asked about whether there had been any changes in his workload over the last few years, Mr McKay said there had been a major increase in the number of trees that his team were required to plant. Mr McKay said the COGG was moving away from large areas of lawn and replacing them with more gardens. Mr McKay estimated that his team had planted close to or more than 500 trees in the last year: (ts p 35).
133 Mr McKay explained that tree planting did not just involve putting trees in the ground. He said that after a new tree is planted, it is placed on a three yearly roster. In the first year the tree is watered weekly. At the end of the first year each tree is watered fortnightly for a further 12 months. In the third year these trees come off the list to be regularly watered. Mr McKay said that during watering rounds, workers from the Horticulture Department also prune (where necessary) and fertilise each tree: (ts p 36).
134 Mr McKay was questioned about the work that he is required to perform when replacing turf with garden beds. He said that his team installed some garden beds and that others were established by contractors. Mr McKay said that once garden beds were planted, employees from the Horticulture Department are required to maintain reticulation, spray for weeds and to top up the garden beds with mulch: (ts p 36).
135 Mr McKay described his team as having a fortnightly maintenance round. Within this fortnight, his team would try and get into all of the parks and gardens in the COGG to make sure reticulation was working, that pruning was done and the like. He said the COGG had quite a few large areas including the Beresford Foreshore, which he said requires a lot of pruning, hedging and weed spraying: (ts p 36).
136 Mr McKay gave evidence about an increase in the number of employees in the Horticulture Department. He said that in the last few years, the number in his team had been increased from five or six employees up to nine or ten workers. Mr McKay said there are now two leading hands and the workforce in the Horticulture Department had been split into two groups: (ts p 37).
137 Mr McKay said that despite an increase in the number of workers, his team still only had access to two trucks. Mr McKay said that despite an increase in the number of employees, the team is still stretched a ‘little bit thin’ in some areas with the equipment they have. He said the team was not getting to every area as fast as they would like to: (ts p 37).
138 When asked about staff retention, Mr McKay said the COGG has struggled to attract and retain young, qualified people in the Horticulture Department. He said he had seen a lot of young people come through who did not stay in their jobs with the COGG. Mr McKay said they tended to work for about six months and move on to roles in mining or with Co-operative Bulk Handling, that pay more: (ts p 37).
139 Mr McKay said he is classified as a Level 4 Step 2. Mr McKay said he receives approximately $3,000 gross per fortnight at this level. When asked about his superannuation contributions, Mr McKay referred to the provisions under the 2021 Agreement (cl 11.3) that allow an employee to make additional employee superannuation contributions as a salary sacrifice, that are matched by the COGG. He said he was not able to take advantage of this arrangement because he needed the money for his family’s weekly expenses: (ts p 38).
140 Mr McKay gave evidence that he lives with his partner and their three children. He said he has a 4-year-old and twins, aged 3. Mr McKay said that in addition to his salary, his partner works on a casual basis as a childcare worker. He said his partner earns approximately $30,000 per annum. Mr McKay estimated that their joint income was about $110,000 per annum: (ts p 38).
141 Mr McKay gave evidence about his expenses, some of which he itemised in a table that was accepted into evidence as part of a bundle (Exhibit A11). He said his household expenditure over the last 12 months was approximately $117,000. He said he made this calculation after going through his and his partner’s bank statements: (ts pp 38-39).
142 Mr McKay said that he currently lives in a property that his parents own in Spalding. He said his parents rent the house to him at a heavily subsidised rate, charging him $350 per week. Mr McKay said that if he and his partner had to go out on to the open rental market, it would cost them over $500 per week: (ts p 40).
143 Mr McKay said the cost of his utilities and groceries had all gone up. He said the cost of childcare was a significant expense, despite his partner receiving a discount because their children attend the same childcare centre where his partner works. Mr McKay said that if they did not have a subsidised rental from his parents or discounted childcare, he is not sure how he would be able to continue working for the COGG: (ts pp 40-41).
144 When asked about his savings, Mr McKay said that he and his partner had stopped trying to save for a house. He gave evidence to the effect they were not making enough money to put any savings aside for a home deposit: (ts p 41).
Evidence of Cosimo Calabrese
145 The WASU called Cosimo Calabrese to give evidence. Mr Calabrese, who commenced employment with the COGG in about 2018, said he works as a Precinct Operations Officer, maintaining gardens, playgrounds and play areas in the Geraldton Foreshore precinct (Geraldton Foreshore): (ts p 67).
146 Mr Calabrese said his duties included looking after the lawns and vegetation on the Geraldton Foreshore as well as cleaning and maintaining shower areas by removing a build-up of sand. In addition to his work around the Geraldton Foreshore, Mr Calabrese said he also assists in maintaining the parks and gardens around the civic centre and the theatre: (ts p 67).
147 Mr Calabrese described the weather conditions that he works in. He said that in summer it is very hot and humid as well as windy. He described the range of temperatures as varying between from high 30’s to the mid 40’s, sometimes up to about 46/47 degrees. He said that when the weather is hot it is necessary to take precautions by having regular breaks to take in fluids and the like, but he said the work still had to be done, which meant working through the heat: (ts p 67).
148 Mr Calabrese said he works with two other maintenance workers, under the supervision of a facilitator. Mr Calabrese said one of his team members operates a small road sweeper which is used to clear all the footpaths in the precinct area. Mr Calabrese gave evidence to the effect that he mostly uses a ride-on mower: (ts p 68).
149 Mr Calabrese said that one vehicle is allocated to his work group. He said his work group is comprised of older employees. He said each of his work colleagues were aged between 65 and 70: (ts p 68).
150 Mr Calabrese said the bulk of his work, is at the Geraldton Foreshore, which he largely maintains on his own. He said his colleagues do help when required, for example after a storm, when strong winds blow beach sand, over barriers and onto footpaths in the precinct: (ts p 68).
151 Mr Calabrese explained that after storms, there is often quite a bit of clean-up work to do, including using shovels or operating a small skid steer or ‘Ditch-Witch’, to clear sand from footpaths. He said when these situations arise, it is necessary for his team to work together as there is often far too much for one person to do alone: (ts p 68).
152 When asked about changes to the Geraldton Foreshore, Mr Calabrese explained that it has undergone significant changes in the last 10 years. He gave evidence to the effect that a lot more people now go to the Geraldton Foreshore: (ts p 69).
153 Mr Calabrese said there are now four cafes on the Geraldton Foreshore, as well as four playgrounds, all of which require maintenance. He said that in addition to these facilities there are 11 showers, adjacent to the beach in the foreshore area, that must be regularly cleared out because of a build-up of sand: (ts p 70).
154 Mr Calabrese said that with more tourists, cruise ships and temporary events that seem to be held more often than they used to be, there is a lot more preparation work, maintenance and cleaning to be done. Mr Calabrese explained that with increased use, there was always something to do: (ts p 69).
155 Mr Calabrese gave evidence that he had noticed the Geraldton Foreshore was being used as a place of refuge by Geraldton’s homeless population. He gave evidence about his interactions with them, which could involve picking up some of their rubbish, but maintaining a good rapport with people who are doing it tough. Mr Calabrese finished this part of his evidence by saying:
“but there are quite a few more than there used to be” (ts p 69).
156 Mr Calabrese explained that his role involved interacting with members of the public throughout the day. He said this included removing hazards like a broken bottle, fixing a broken shower or cleaning up some mess that impacted on their enjoyment or impressions of the area: (ts p 70).
157 When asked about whether there had been any change to the size of team to attend to maintain the Geraldton Foreshore, Mr Calabrese gave evidence to the effect there had been no corresponding increase in staff: (ts p 70).
158 Mr Calabrese was asked about staff retention. He said that he had observed, the COGG had difficulty, retaining staff. Mr Calabrese said he had noticed the COGG was short-staffed in the ‘Works, Reticulation and Horticultural teams’: (ts p 71).
159 When asked about his earnings, Mr Calabrese said that he is classified as a Level 3 Step 1. He said that before tax he receives approximately $69,000 per annum: (ts p 71).
160 Mr Calabrese said he lives with his wife Nicole and their two dogs. His said his wife works on a full-time basis at the Coles Supermarket (Coles). Mr Calabrese gave evidence that he and his wife’s joint income was approximately $120,000 per annum: (ts p 72).
161 In addition to his work at the COGG, Mr Calabrese said he has started performing night fill work at Coles approximately three nights per week. On the nights he performs night fill, Mr Calabrese said he works between 6.00 pm and 11.00 pm.
162 Mr Calabrese was asked about his household expenditure. He provided copies of his bank statements to illustrate his fortnightly expenditure. Mr Calabrese gave evidence that his fortnightly mortgage repayment is currently $900 per fortnight whereas a few years ago it was just over $400: (ts p 72).
163 During his evidence on his fortnightly expenses, Mr Calabrese stated that he pays approximately $300 per fortnight for private health insurance. He said although this was a big expense he did not believe he or his wife could afford to let this insurance go: (ts p 74).
164 On his overall expenditure, Mr Calabrese said that after meeting the costs of his private health insurance and his mortgage repayments, he did not have much money left over for discretionary spending. When commenting on his fortnightly expenditure overall, he said;
“I think I have probably got more going out than going in” (ts p 74).
Evidence of Joey Van Lierop
165 The WASU called Joey Van Lierop who works with Mr Hoddy as a maintenance worker in Parks and Infrastructure, to give evidence. Mr Van Lierop said his work involves conducting inspections of the most popular playgrounds in Geraldton, which he says he conducts on Mondays, to identify if there is any equipment that needs to be repaired: (ts p 102).
166 Mr Van Lierop said information on items requiring repairs, which could include gazebos, barbecues, benches or playground equipment is provided in reports received from the police or members of the public. Mr Van Lierop described his duties as maintaining, installing and removing any damaged equipment: (ts p 102).
167 Mr Van Lierop said he is employed on a full-time basis. He said Parks and Infrastructure is part of the Maintenance Department which includes employees who install and maintain street signs and the concreters who lay concrete for paths, curbs and the like: (ts p 102).
168 When describing the COGG’s infrastructure, Mr Van Lierop said there are just over 50 playgrounds, which includes facilities in the towns of Mullewa, Walkaway and at Devlin Pool. In addition to playgrounds, Mr Van Lierop said that he was also required to maintain drink fountains, gazebos, barbecues and other infrastructure, which he confirmed were being added to as the city grows. Mr Van Lierop equated an increase in facilities with an increase in workload: (ts p 103).
169 Mr Van Lierop stated that in addition to the repair work he performs with Mr Hoddy in Geraldton, he is also required to maintain playgrounds in Mullewa. Mr Van Lierop said that he performs quarterly inspections of facilities in Mullewa and depending on the issues that are identified, will make additional trips to effect repairs: (ts p 103).
170 Mr Van Lierop gave evidence about his earnings. He said he earns around $75,000 per annum. In addition to the income he receives from this work, Mr Van Lierop said his wife works on a full-time basis at the St John of God Hospital. With their combined income, Mr Van Lierop said they earn approximately $150,000 gross per annum: (ts pp 103-104).
171 Mr Van Lierop said he and his wife have four children, one grandchild, with another grandchild on the way. Mr Van Lierop said three of his children live at home with him aged 17, 16 and 14: (ts p 104).
172 Mr Van Lierop said he currently pays $430 per week in rent. He said the house he rents is currently up for sale, which has happened for the second time in 12 months. He said the house did not sell the first time it was placed on the market, so he was allowed to continue renting the property. He was unsure whether this would change if the house is sold: (ts p 104).
173 When asked about what may happen if he wasn’t able to continue renting the property, Mr Van Lierop said rental prices for comparable houses that would allow him to accommodate his family, at a minimum, range from $450-$550 per week. Mr Van Lierop said the house he is in has four bedrooms. With the number of children he has, Mr Van Lierop said he would need a home with at least four bedrooms to accommodate everyone: (ts p 105).
174 Mr Van Lierop gave evidence about his other weekly expenses. He said his electricity bill varied from $600-$1,200 every two months. Mr Van Lierop said that while the energy rebates he had received from the government had assisted in meeting the cost of his energy bills, they were not guaranteed and his power bills, remained one of his more significant expenses: (ts p 105).
Evidence of Esper Windsor
175 The WASU called three witnesses who are employed by the COGG to perform roles ‘inside’. The first of these was Esper Windsor who works at the COGG as a ‘Young Peoples Services Officer’: (ts p 80).
176 Ms Windsor says she commenced working for the COGG in 2005 as a casual. She is now employed on a permanent part-time basis, 27 hours per week. Ms Windsor explained that she performs her role in the COGG Library. Ms Windsor said that in addition to performing duties on the front desk on Mondays, she presents ‘Story Time’ and ‘Rhyme Time’ sessions twice a week, every Thursday and Friday: (ts p 80).
177 In addition to providing these services, Ms Windsor said that she performs other duties in the library including sorting books, shelving, returning books to the State Library, providing an outreach program to schools and delivering ‘Early Literacy Better Beginnings’ bags, which the COGG receives from the State Library: (ts p 80).
178 Ms Windsor gave evidence that in addition to the duties she performs at the COGG library, she also works two days per week 2.00 pm to 9.15 pm on Tuesdays and Thursdays at the Nazareth Aged Care Centre in Geraldton. Ms Windsor said she used to be a registered nurse in the Philippines. With her background in nursing, Ms Windsor has been able to secure work as an aged care worker: (ts p 80).
179 Ms Windsor gave evidence that she is the sole bread winner in her household. She said this is because her husband passed away three years ago. She said the income she receives provides for herself and her daughter who is in her early 20’s. Ms Windsor said her daughter is currently studying and so she is mostly dependent on the income Ms Windsor takes home: (ts p 81).
180 Ms Windsor was asked to provide some details on the literacy programs she provides in the COGG Library. She said in previous years; she used to run ‘Story Time’ once a week for 20 minutes. It then became very popular. Ms Windsor said at one point she had as many as 100 participants in the session including parents, carers and young children. With it’s rise popularity, the COGG decided to run additional sessions every Thursday and Friday: (ts p 81).
181 Ms Windsor said the ‘Story Time’ and ‘Rhyme Time’ sessions are still very popular. She said there are as many as 50 to 60 participants in each session: (ts p 81).
182 In addition to her evidence regarding ‘Story Time’ and ‘Rhyme Time’, Ms Windsor spoke about the front counter duties she performs in the library. Ms Windsor described having to deal with people from a whole range of backgrounds, including customers who exhibit ‘difficult behaviour’. Ms Windsor described having to call police to deal with aggressive customers. She said this was something she was having to deal with more regularly: (ts pp 81-82).
183 When asked about her earnings, Ms Windsor said that she earned approximately $800 per fortnight from her work with the COGG. Ms Windsor said she is paid at the classification of a Level 2 Step 4. In addition to her earnings at the COGG, Ms Windsor gave evidence that she earns approximately $800 per fortnight, after tax, for the work she performs at Nazareth Care: (ts pp 82-83).
184 Ms Windsor gave evidence about her accommodation arrangements. She said she lives in a Geraldton caravan park, in a caravan that she owns. Ms Windsor said a few days prior to the hearing, she was given a new lease agreement which increased the weekly rent she pays from $135 to $168 per week. Ms Windsor said the rent she will be required to pay under the new lease will be increased annually by 5%: (ts p 83).
185 Ms Windsor said the increase in rent was of concern to her because she is the sole income earner in her household. When asked about her cost of living, Ms Windsor described herself as barely keeping her head above water: (ts p 84).
186 Ms Windsor said she had found dealing with the cost of living challenging because she did not have any family support in Australia, as her family are all overseas: (ts p 85).
Evidence of Diane McDonald
187 Diane McDonald was the second witness the WASU called who works ‘inside.’ Ms McDonald, is employed as a library clerk at the COGG Library. Ms McDonald said she became a permanent part-time employee with the COGG in 2007. Prior to this, Ms McDonald worked in the library as part of an Aboriginal employment program: (ts p 8).
188 Ms McDonald said she commenced in the Aboriginal employment program in 1995. In addition to her work on this program, Ms McDonald said she also worked at the COGG Library on a casual basis. In 2007, Ms McDonald was directly employed by the COGG: (ts p 88).
189 Ms McDonald said that her job has largely remained the same since as when she first commenced employment with the COGG. She described her duties in the COGG Library which included work on the front desk for around three shifts per week and work in the back room of the library where she sorts and repairs books and returns them to the State Library: (ts p 88).
190 Ms McDonald described her duties at the front desk. She said she is required to attend to customers, who can be rude and difficult to deal with. Ms McDonald said that while she accepted it was something she had to deal with as part of her job, it had put a lot of stress on her and her colleagues: (ts pp 89-90).
191 Ms McDonald said that for most of her employment with the COGG, she has been employed as a Level 2. However, in the last six months, Ms McDonald was reclassified to a Level 3: (ts p 90).
192 Ms McDonald said that most of the people who work in the library are employed on a part-time basis. Ms McDonald said she works three full days per week and two half days: (ts p 91).
193 McDonald gave evidence that there are approximately 10 to 12 people who work in the COGG Library, which she says is a reduction in previous staffing levels. Ms McDonald said the staffing levels have remained stable in the library for the last six to eight years: (ts p 91).
194 Ms McDonald said quite a few people in Geraldton use the library to access computers, to scan documents and for photocopying. When she was asked if more people were using the library, Ms McDonald responded by saying that at least a couple of people joined each day: (ts p 91).
195 Ms McDonald said the number of people using the library today when compared with three or four years ago has in her view, increased. She said more people were using the library’s computing, photocopying and scanning facilities because they were being sent by Centrelink which did not provide this type of assistance to their clients. Ms McDonald said most of the people who Centrelink had sent to the COGG Library, were elderly who had not used computers before: (ts p 92).
196 Ms McDonald gave evidence about her income from the COGG. She said she receives after tax, approximately $1,900 per fortnight: (ts p 92).
197 Ms McDonald gave evidence about her living arrangements and her weekly expenses. She said she currently lives with and cares for her brother who has dementia. Ms McDonald said that she is required to take her brother to his doctor’s appointments. She also said that she supplies food for their meals, which she says is ‘very expensive’: (ts pp 93-94).
Evidence of Cassandra Young
198 The WASU called Cassandra Young who works for the COGG as a ‘Community Partnerships Officer’ in its Mullewa office, to give evidence. Ms Young described her role as ‘connecting the community to’ the COGG’s service providers and other outside services: (ts pp 94-95).
199 Ms Young said she has worked in the Mullewa office for the last four years. She said she commenced her employment at the COGG as customer service officer. Ms Young said she is the only full-time employee out of four employees who work there: (ts p 95).
200 Ms Young said she is currently supervised by a manager who was appointed to the role in August 2023, but who only works on a part-time basis. Ms Young said the two other customer service officers she works with, are also part-time employees: (ts p 95).
201 Ms Young explained that two previous managers who worked in the Mullewa office on a full-time basis did not stay for as long as she hoped they would. She said the office was at this time staffed by herself, with assistance from these managers on a sporadic basis, with some support from staff in Geraldton: (ts p 95).
202 Ms Young said one of the two customer service officers she works with is currently on maternity leave. Ms Young explained the job this employee performs is shared with another customer service officer. Ms Young said there are two vacant positions in the Mullewa office that have been advertised but have not been filled: (ts p 95).
203 Ms Young gave evidence about the duties she performs in the Mullewa office. She said that in addition to her duties as a ‘Community Partnerships Officer,’ she performs a customer service role for the Department of Transport (DOT). Ms Young explained that this is because the Mullewa office accepts payments for and provides services on the DOT’s behalf: (ts p 96).
204 Ms Young said the Mullewa office is open from 9.00am to 4.00pm daily. She said the number of DOT transactions the Mullewa office processes varies from 0 - 20 in a day. Ms Young said her involvement in these transactions very much depends on her workload: (ts p 96).
205 Ms Young also described some of the work that she performs in dealing with customers at the Mullewa office. She said she is required to attend to telephone enquiries, emails and deal with any other matters raised by people who come into the office: (ts p 96).
206 Ms Young said that her classification under the enterprise agreement is as a Level 4 Step 3. She said that after making additional superannuation contributions that she pays as a salary sacrifice and payments for a car that she has on a novated lease, her take home pay is approximately $1,900 per fortnight: (ts p 97).
207 When asked about her fortnightly expenses, Ms Young said that she pays $400 per week in rent, as well as groceries of $250-$500 per fortnight. Ms Young said that because Mullewa is in a remote setting, the town does not have a supermarket. She said a local store has some basic items, but they are expensive. For this reason, Ms Young said she needs to travel 200km round trip to/from Geraldton to access a full range of groceries: (ts p 97).
208 Ms Young said Woolworths is providing a delivery service to Mullewa on Wednesdays and Thursdays which she says has cut out the cost of travelling to Geraldton for shopping. However, Ms Young said there are still times she needs to travel to Geraldton for some things that are not available through online shopping: (ts p 98).
209 In addition to power and other utility expenses, Ms Young said her other major expense is for her children’s education. Ms Young said her daughter will be attending boarding school in Geraldton at a cost of approximately $15,000 per annum. In addition to this expenditure, Ms Young said she had to find money for her daughter’s schoolbooks, uniforms and other items: (ts p 98).
210 Ms Young has two other children, both of whom are at primary school. Ms Young said she sends her children to the local Catholic Primary School and their school fees are approximately $2,500 per annum: (ts p 99).
211 Ms Young said that she pays for her children’s school fees on a fortnightly basis with assistance she receives through Centrelink from a Family Tax Benefit. Ms Young expects the expenditure that she will have to outlay on her children’s education will go up in the coming years as her other two other children aged 4 and 10, approach high school age: (ts p 100).
212 When asked about her experiences in dealing with the cost of living, Ms Young who said she had lived away from Mullewa for a period, said she had returned because she could not afford to be anywhere else. Ms Young said she tried to do the best for her community because she was born and raised in Mullewa: (ts p 100).
213 On the question of alternative employment, Ms Young said she was unable to go anywhere else. Succinctly put, she said;
“Like, I could not go on the mines because I have three kids” (ts p 100).
The Respondent’s Evidence
214 In addition to the expert evidence from Mr Morey that I referred to earlier the COGG called Paul Radalj, who works as the COGG’s Director of Corporate Services (DCS).
215 Mr Radalj who holds a Bachelor of Business degree, has worked at the COGG for 25 years. He said he commenced in his current role, approximately six years ago in 2019. Mr Radalj gave evidence that although he performs multiple tasks in his DCS role, his main responsibility is to look after the financial health and good governance of the COGG: (ts p 108).
216 Mr Radalj said his duties include looking after the COGG’s finances, business planning, Human Resources (HR) and governance. He said that each of the positions he has worked in at the COGG, have been in management and have related to finance or business planning: (ts p 108).
217 Mr Radalj said the COGG currently employs around 289 staff. He said that while the COGG has a structure that provides for 315 full-time equivalent employees (FTEs), only 289 of these positions are currently filled. He said that 70% of these employees pay council rates (rates) to the COGG: (ts p 109).
218 Mr Radalj was asked about the industries that operate in the COGG. He confirmed there are a range of industries including mining, agriculture, aquaculture, government departments and a service industry for the northwest of WA: (ts p 110).
219 Mr Radalj described Geraldton as ‘fairly resilient to change’ by which he said this meant that Geraldton was not reliant on just one industry. He said that if the mining sector is strong, it may be offset by a bad year in the agricultural sector: (ts p 110).
220 Mr Radalj gave evidence about how the COGG plans for financial expenditure. Mr Radalj said the COGG had adopted an ‘Integrated Planning Framework’, which is used by all local councils: (ts p 110).
221 He said the Integrated Planning Framework requires the preparation of an ‘Integrated Planning and Recording Schedule’ (planning schedule). A copy of the current planning schedule was accepted into evidence as Exhibit R2.
222 Mr Radalj described the planning schedule as a yearly rolling calendar the COGG follows to guide its financial decision making so the COGG can plan for the following year’s capital budget program: (ts p 112).
223 In addition to the planning schedule, Mr Radalj explained that one of the other documents the COGG relies upon to prepare its annual budget is the City of Greater Geraldton’s Long-Term Financial Plan 2023-2033 (LTFP), a copy of which was earlier accepted into evidence as Exhibit A27.
224 Mr Radalj explained that the LTFP is also used by the COGG to guide the financial decisions it makes: (ts p 110). He said the LTFP is reviewed every year: (ts p 111). Mr Radalj said this happens because the LTFP influences what is contained in the annual budget.
225 Mr Radalj said that in addition to the LTFP and the COGG’s Capital Infrastructure Program, a further document the COGG considers when preparing its budget is the COGG’s Corporate Business Plan. Mr Radalj said this document is important because it lists actions that require resourcing: (ts p 111).
226 Mr Radalj said the planning schedule commences in September of the current financial year and runs to June. He said the planning schedule culminates in the adoption of the COGG’s Annual Budget (annual budget) and any updates to the LTFP: (ts p 111).
227 In his evidence, Mr Radalj said the planning schedule, which includes preparing an annual budget, takes nine months. He described the process as complex with many moving parts. Mr Radalj said the preparation of an annual budget for the new financial year on the planning schedule commences in or around February/March each year: (ts p 112).
228 Mr Radalj said that prior to the preparation of the annual budget, a series of steps are taken to inform this process. He said there is a mid-year review in or around February/March each year which provides guidance on any changes that have occurred with the existing budget. He also said that a review of the LTFP is undertaken: (ts p 113).
229 Mr Radalj said that when preparing an annual budget, the COGG must consider the underlying principles that are contained in the LTFP. He said that one of the principles is the prevention of revenue raising shocks to the community. The example he provided was a one-off annual increase in rates of 10%. Mr Radalj said large increases in rates of this type were not palatable to the council or to the community: (ts p 113).
230 A further principle from the LTFP Mr Radalj referred to was ensuring the annual budget meets the financial ratios to ensure the COGG is in a financially sustainable position. When asked what he meant by a financial ratio, Mr Radalj described this has the amount of debt the COGG has, when compared with its income or assets: (ts p 114).
231 Mr Radalj said a further principle the COGG had adopted under its LTFP was ensuring the council achieved a small operating surplus. He said this was for the purposes of ensuring the COGG was raising enough revenue to fund its asset renewal program each year. He said this was necessary to ensure the COGG’s assets remained safe and functional for the community: (ts p 114).
232 Mr Radalj gave evidence about the revenue the COGG receives. He said that in addition to rates, the COGG’s other sources of income include various fees and charges. He said the two together make up about 85% of the COGG’s revenue: (ts p 115).
233 When asked about rates increases, Mr Radalj said that over the last ten years, the COGG on average had increased rates by around 2.8% per annum. He said the council is very much set on annual rate increases of between 2.5 – 3% per annum. Mr Radalj said the COGG in the 2024/2025 financial year, had increased rates by 3.9% but this was an attempt to negate increased costs: (ts p 115).
234 Mr Radalj gave evidence about ‘fees and charges.’ He said a schedule of fees and charges is set by reference to the Local Government Act 1995. He said in most instances the amount charged is based on cost recovery, whereas others are based on statutory charges. Inherent in his evidence was the suggestion that there is a limit to the amount of income the COGG can generate from fees and charges: (ts p 116).
235 Mr Radalj said that once fees and charges are set, they remain fixed for the year of the budget they are contained in. He said you cannot change a fee or charge unless it is authorised by a meeting of the council. Mr Radalj said fees and charges are set by the council at the same time the annual budget is endorsed and adopted. He said that in the same way fees and charges are set for a budget year, rates cannot be increased after budget has been approved: (ts p 116).
236 Mr Radalj was questioned about other sources of income the COGG receives. He said the COGG receives income by way of interest earnings, which he explained is the interest that accumulates on surplus funds: (ts p 117).
237 In addition to rates, fees and charges, the COGG’s other major source of income are grants funding, which Mr Radalj said is comprised of general grants and for specific purposes, which COGG receives from the Federal Government. Mr Radalj said that unlike a specific purpose grant, the council is permitted to determine how the funds obtained under a general-purpose grant, are to be used and invested: (ts p 118).
238 Mr Radalj presented as part of his evidence ‘Statements of Comprehensive Income’ for the 2022/2023 and 2024/2025 budgets. Both documents include a description of forecast revenue and the expenses for the respective financial years to which the two budgets relate. These documents were accepted into evidence as Exhibits R3 and R4.
239 Mr Radalj was asked to compare the amounts the COGG had budgeted for employee costs in the 2023/2024 financial year with those in the 2024/2025 financial year. He said the amount budgeted for employee costs had increased by approximately $4 million per annum which Mr Radalj said was the biggest increase he had seen in his 25 years at the COGG: (ts p 120).
240 Mr Radalj was asked if the COGG had made any plans for large capital expenditures in the next five or so years (major projects). He said the COGG was planning to spend approximately $15 million to undertake the rehabilitation of its landfill cells and that it had plans to develop the Maitland Park Education Precinct (Maitland Park) to improve community safety: (ts p 121).
241 Mr Radalj said that while the design cost to improve Maitland Park was approximately $3 million, the cost of the actual project would likely be in the range of $20-$30 million. In addition to these projects, Mr Radalj said the civic centre had reached its capacity. He said for this reason, the COGG was now exploring the development of a new civil precinct, the cost of which could be in the range of $30-$50 million: (ts p 121).
242 Mr Radalj said the COGG was investigating the establishment of workers’ accommodation in Geraldton. In addition to this project, he said the COGG was also looking to upgrade the theatre, which he estimated would cost between $30-$50 million. He said upgrading the theatre would require significant works. Mr Radalj said that each of these projects were significant and required further planning: (ts p 121).
243 Mr Radalj was asked about the parameters the council placed on rate increases. Mr Radalj responded by saying that rate increases are not to exceed 3% per annum. He said this parameter forms part of the modelling in the COGG’s LTFP: (ts p 122).
244 Mr Radalj gave evidence that there had been growth in the amount the COGG received from rates, fees and charges. He said this was because the COGG had lost revenue during the COVID Pandemic and any growth in revenue was a return to ‘normality’. He said that over the last two years the COGG had expected growth in fees and charges but it was unlikely to continue: (ts p 124).
245 Mr Radalj was questioned about how the COGG would fund predicted employee costs. He said the only levers the COGG has available to it to meet an increase in expenditure beyond what is budgeted for, is through an increase in rates, fees and charges and by cutting services: (ts pp 124-125).
246 When asked what cutting services would involve, Mr Radalj said there are some mandatory services the COGG provides and some non-mandatory services. Mr Radalj described the non-mandatory services as those the community would like the council to provide but which the COGG is not under a statutory obligation to deliver: (ts p 125).
247 An example of one of the non-mandatory services, Mr Radalj said the COGG was not required as a local council to provide youth or ‘youth at risk’ programs. He also said that when the COGG cuts services, it would reduce staffing levels. He said if the COGG removes a service, then the person delivering the service may no longer be required and might not be able to be redeployed somewhere else: (ts p 125).
248 As part of his evidence, Mr Radalj presented two spreadsheets that projected the costs of the parties’ competing wage outcomes. The first of these exhibits (Exhibit R5) shows the projected cost of the COGG’s wage proposal over a 10-year period to June 2034. The second spreadsheet (Exhibit R6) shows the projected costs of the WASU wage proposal over the same period.
249 When commenting on the COGG wage proposal, Mr Radalj said it was in effect a 14% increase over the life of the new agreement. He said this was because the COGG had increased the wage rates for its lowest level employees from Level 2 to Level 3, which he said in real terms had increased the cost of the COGG’s offer by a further 1%: (ts p 127).
250 Mr Radalj gave evidence to the effect that the COGG wage proposal required the COGG to operate in an overdraft position. This he said meant the COGG would have to use money from its reserves to fund the ongoing cost of the wage increases: (ts p 127).
251 Mr Radalj was asked whether the anticipated expenditure described Exhibit R5 included a capital outlay for major projects. Mr Radalj said that while there was provision for the rehabilitation and capping of the landfill sites, the LTFP did not include spending on major projects: (ts p 128).
252 When asked about Exhibit R6, Mr Radalj said both wage proposals would require the COGG to continue to operate in a deficit position. He suggested the financial impact of the WASU wage proposal would be more pronounced. Mr Radalj said the COGG, in either scenario would not allow the COGG to become insolvent: (ts p 128).
253 When asked what financial lever the COGG would likely use to meet an increase in wages, Mr Radalj said that in his view, the council would pull the service reduction lever rather than increase rates. He said this was because the community and the council will only accept a certain level of rates increases: (ts p 129).
254 Mr Radalj said it was more likely the COGG, would instead of hurting the community through rate increases, look at cutting services. When asked about the number of jobs that would likely be lost from cutting services, Mr Radalj suggested it would easily be 20 FTEs: (ts p 129).
255 Mr Radalj said that even with the COGG wage proposal, it is likely the COGG would give serious consideration to reducing the number of FTEs. He said this was because on current projections, the COGG would not be able to get into an operating surplus position: (ts p 129).
256 Mr Radalj said that on current modelling, the COGG will continue to remain in a net deficit operating position. He said the council will want to address this because it has an expectation the COGG should be operating with a small surplus: (ts p 129).
257 Mr Radalj gave evidence to the effect the continuation of operations in a deficit position is not financially sustainable. He suggested that on its current budget trajectory, the COGG will not generate enough revenue to deliver, all the services the COGG provides and to maintain its assets: (ts p 130).
258 Mr Radalj was questioned about whether the COGG had any regard to what other local governments were paying by way of wage increases, when the COGG wage proposal was framed. Mr Radalj said the COGG had made a comparison with the wage increases the City of Albany is paying to its employees: (ts p 130).
259 Mr Radalj described the City of Albany as having similar characteristics to the City of Geraldton. He said both councils have an urban and rural mix, are about the same distance from Perth, have airports, are both on the coast and while they are not the same size, Albany as a comparator to Geraldton, was the closest: (ts p 131).
260 Mr Radalj produced a table, which he said provided a comparison between the wages and salaries of the classifications that appear in the City of Albany Industrial Agreement 2023 (City of Albany EBA) with the equivalent classifications that appear in the new agreement: (Exhibit R7).
261 Mr Radalj said the classifications that appear in the City of Albany EBA were the same as those contained in the new agreement. He said 70% of the COGG’s workforce are employed in classifications under Level 8, more specifically between Levels 3 Step 1 and Level 7 Step 4: (ts p 131).
262 Relying upon Exhibit R7, Mr Radalj suggested the rates of pay under the COGG wage proposal are substantially higher than the pay rates that apply under the City of Albany EBA. He suggested that on this basis, the COGG’s wage proposal will provide for wages outcomes that are well above market and 30% over the Award: (ts p 131).
Cross Examination of Mr Radalj
263 Mr Radalj was cross-examined by Mr Fogliani. When asked about whether he had prepared Exhibit R7, Mr Radalj confirmed that it was prepared by staff who work in the COGG’s HR Department: (ts p 132).
264 Mr Fogliani asked Mr Radalj whether he knew what a Level 3 at the City of Albany performed, in comparison to an employee at the same level at the COGG. Mr Radalj was unable to say: (ts p 133).
265 When questioned further on Exhibit R7, Mr Radalj said he did not personally conduct a comparison between the classifications in the two agreements. He said this assessment was done by other members of the COGG’s staff: (ts p 133).
266 Mr Fogliani questioned Mr Radalj about the number of FTEs who work at the COGG. While Mr Radalj confirmed that the COGG has a structure that provides 315 FTE positions, it actually only employs 289.
267 In response to further questioning on this topic, Mr Radalj accepted that a proportion of the 289 employees, are part-time employees. He was not however able to say the number of employees who are employed on a part-time basis: (ts pp 134-136).
268 Mr Fogliani questioned Mr Radalj about the COGG’s planning documents including the City of Greater Geraldton’s Strategic Community Plan (Strategic Community Plan).
269 Mr Radalj said that when viewed in a hierarchy, the Strategic Community Plan is at the top. He said the Strategic Community Plan, provides a list of the local community’s aspirations, while the Corporate Business Plan is an internal document that sets out how the COGG will deliver these aspirations: (ts pp 136-137).
270 When asked about the LTFP, Mr Radalj accepted the LTFP requires the COGG’s annual budget to be updated on a quarterly basis. Mr Radalj said this was so adjustments may be made for any changes that may affect the budget: (ts p 138).
271 Mr Fogliani asked Mr Radalj about the main industries the COGG relies on. He confirmed that mining now heads this list, ahead of agriculture. When asked whether the population of Geraldton had increased because of the shift to mining, Mr Radalj said that it had, but not to expectations: (ts p 139).
272 When commenting on ‘fly/in fly/out’ work arrangements that apply in other WA mining communities, Mr Radalj said that Geraldton was more a place where the workers flew out for work and then returned. He also said Geraldton had become a base for the provisions of services to mine sites in both the Midwest and Northwest of WA: (ts p 140).
273 Mr Fogliani asked Mr Radalj about the services the COGG provides in the local community. Mr Radalj accepted that the role of local government had become more prominent and there was a greater focus on the services it provided. He also accepted there is a growing demand for increased services, and it was something the COGG had to deal with: (ts p 141).
274 Mr Radalj was questioned about the sources of the COGG’s income. He restated his earlier evidence that the COGG under its LTFP wanted to keep aggregate rates revenue increases to between 2.5% to 3.0% plus growth. Mr Radalj explained that “growth” came with an increase in or additions to, the number of properties for which council rates are paid to the COGG: (ts p 142).
275 Following this, Mr Fogliani referred Mr Radalj to the COGG’s Annual Reports for the financial years ending 2021/2022 (Exhibit A22) and 2022/ 2023 (Exhibit A23).
276 In response to questioning from Mr Fogliani, Mr Radalj agreed that except for 2021/2022, the rates revenue the COGG received had increased in each financial year since 2019. Mr Radalj said the COGG had decided that it would not increase rates in the 2020-2021 financial year, to provide financial relief to the community during the COVID pandemic: (ts p 143).
277 In further questioning Mr Radalj accepted that in the 2022 financial year rates revenue increased by 5%. He also agreed that the rates revenue the COGG received for the 2023 financial year went up by 4.6%.: (ts pp 147-148).
278 During what was a quite an elongated exchange of questions and answers Mr Radalj was careful to draw a distinction between the figures that appear in the COGG’s annual budgets and its actual results. While he confirmed the COGG makes its financial decisions from budget to budget, Mr Radalj agreed the increases in the rates revenue the COGG received were higher than the 2.4-3% it had budgeted for: (ts p 148).
279 When asked about projected expenditure for wage increases, Mr Radalj acknowledged the LTFP indexed annual employee costs by 2.5% – 4% per annum: (ts p 152). He also accepted the annual increase in employee wages may differ from the amounts forecast for the reason specified at p 21 of the LTFP which states:
Achieving annual operating surpluses are now subject to new risks around future expenditure pressures stemming from demand for greater wage increases to combat rising costs of living and materials and contract price pressures on the back of high inflation.
280 Mr Fogliani asked Mr Radalj if he was prepared to accept the COGGs budgets quite often don’t reflect the actual circumstances as they stand at the end of the financial year. In what was a lengthy response to the question, Mr Radalj in effect disagreed. He said that on average, the COGG’s budgets ‘fairly much align’ with the COGG’s actual results: (ts p 157).
281 After providing this response, Mr Fogliani referred Mr Radalj to the COGG’s annual reports for the 2017 (Exhibit A17), 2022 and 2023 financial years: (ts p 157). Whereas the financial statements in each of these reports show the COGG had budgeted for a deficit, the actual results in these years show the COGG returning an annual profit.
WASU’s Outline of Submissions
282 Having now provided a summary of the evidence in this matter, it is necessary to provide a description of the parties’ submissions, commencing with the points made by the WASU in support of its claim.
283 The WASU filed an Outline of Opening Submissions (WASU Opening) as well as Outline of Submissions in Reply (WASU Reply). Like the COGG, counsel for the WASU was afforded the opportunity to make closing oral submissions.
284 The WASU submitted that it is important the COGG’s employees are provided with annual pay increases. This is so COGG’s employees are fairly rewarded for their work and so that the COGG can attract, develop, and retain the workers it needs to deliver the required level of services to the community now and in the future. The WASU submitted the parties jointly share this view (WASU Opening para 9).
285 At paragraph 10 of the WASU’s Opening, the WASU listed a series of factors to justify its claim for a 6% increase in both the second and third years of the new agreement. Those factors are:
a. The annual change in Perth CPI for the years ending on 31 March 2022, 2023, and 2024 were as follows:
i. 31 March 2022: 7.6%;
ii. 31 March 2023: 5.8%;
iii. 31 March 2024: 3.4%
b. The WASU submitted these increases in CPI placed a sudden and significant cost burden on the COGG’s employees. It was submitted that strong and meaningful pay increases are required to combat the rising costs of living.
c. It was submitted there have also been unique cost of living pressures within Geraldton in recent years. The town has now become a mining hub for various companies. This has drawn more people into the town – increasing the cost of housing and making it more difficult for residents to find a home. The population living in Geraldton over recent years has been as follows:
i. 2019-2020 reporting year: 38,632 residents;
ii. 2020-2021 reporting year: 38,231 residents;
iii. 2021-2022 reporting year: 41,198 residents;
iv. 2022-2023 reporting year: 41,495 residents.
d. The WASU submitted there has been an increase to its members workload caused by an increase in the number of residents using the City’s facilities and services, coupled with the City’s failure to maintain (let alone increase) staffing levels. It was submitted the WASU’s members believe over recent years that they have been required to do more with less staff.
e. It was submitted that over the last 10 years, the COGG’s annual revenue has increased dramatically, whereas its employee costs have remained largely unchanged. The WASU provided a table, that appears below, to illustrate this point.

Year
Revenue
Employee Costs
% of Expenditure
Page in WASU Bundle
Exhibit Number
2013-2014
$66,788,419
$29,488,810
44.15
748
A14
2014-2015
N/A
N/A
N/A
N/A
A15
2015-2016
$71,157,085
$27,897,929
39.21
876
A16
2016-2017
$79,385,682
$26,416,916
33.28
993
A17
2017-2018
$78,166,041
$27,739,286
35.49
1117
A18
2018-2019
$79,978,818
$27,672,236
34.60
1243
A19
2019-2020
$79,755,441
$28,172,282
35.32
1381
A20
2020-2021
$74,960,049
$26,309,285
35.10
1523
A21
2021-2022
$85,724,275
$28,913,674
33.73
1665
A22
2022-2023
$92,364,948
$29,753,773
32.21
1799
A23

286 The WASU submitted the data contained in the preceding table, reveals that the COGG is in a better position than ever before, to pass on meaningful pay increases to its workforce, to relieve the cost-of-living increases the COGG’s employees have experienced over recent years and to make it more attractive for existing staff to remain employed (WASU Opening para 10(f)).
287 It was submitted that increasing employee wages to the level sought by the WASU would, in addition to helping the COGG attract and retain staff, provide the added benefit of minimising the COGG’s hiring and training costs as well as mitigating a loss of corporate knowledge and experience that results from employees leaving to work elsewhere (WASU Opening para 10(f)).
288 The WASU in its submissions acknowledged that while the COGG also has an interest in maintaining a balanced budget, its employee costs for the 2022-2023 financial year were largely the same as they were in the 2013-2014 financial year. This is despite the City’s annual revenue increasing over the same period from $66,788,419 to $92,364,948 (WASU Opening para 17).
289 It was submitted that local governments are not intended to be large profit-generating enterprises. The WASU contended they exist to provide for the good government of persons within their relevant district (WASU Opening para 18).
290 While the WASU conceded that operating in a surplus is an important aspect of providing for the good government of its constituents, it was submitted the provision of fair and reasonable wages to its employees was equally important. The WASU submitted that without skilled and experienced workers, the COGG would not be able to meet its obligation to provide for the good government of the persons in its district (WASU Opening para 18).
291 The WASU submitted that it was in the community’s interests, (which the WASU described as the interests of ratepayers and residents) that the COGG provided appropriate pay and conditions, to attract, train, and retain skilled staff, to provide services to the community (WASU Opening para 19).
292 It was submitted that if the COGG did not invest sufficient funds to pay its employees an attractive wage, the COGG would not be able to provide services to the community, regardless of the level at which the council sets its rates. It was submitted that such an outcome would be contrary to the interests of the community (WASU Opening para 21, also see WASU Reply para 6).
COGG’s Submissions
293 The COGG submitted that its wage proposal is fair, fiscally sound and is supported by the evidence. It was submitted the 6% wage increase the COGG provided to employees from 1 July 2023 was more than the amount the COGG had budgeted for in its 2022/2023 annual budget, which required a reduction in operating expenditure (COGG Submissions paras 11-12).
294 It was submitted that as there were Level 2 employees (mostly depot workers) who had remained at a Level 2 rate and had not progressed to a Level 3 position, the COGG had decided to pay an administrative Level 3 increase to all Level 2 remunerated employees in recognition of cost-of-living pressures (COGG Submissions para 12).
295 At paragraph 13 of the COGG Submissions it was submitted the wage increases the COGG has proposed, have been properly budgeted for in accordance with the principles in the LTFP and have regard to the COGG’s budgetary constraints that include:
(a) the COGG is currently operating at a deficit position, contrary to its LTFP, which is not sustainable in the longer term;
(b) the COGG’s return on investment from existing revenue streams will diminish in the near future due to predicted falls in the cash rate;
(c) the COGG anticipates several large capital projects over the next five years to deliver improvements in public facilities; and
(d) the COGG's other operating costs, including materials and contractors, have risen substantially over the previous two financial years.
296 The COGG submitted that its wage increase proposal is fair and reasonable having regard to the comparative and expert evidence:
(a) the proposed increases are consistent with or better than the wage increases in industrial agreements for other local governments over the same period including, in particular, those provided for in the City of Albany EBA;
(b) they are consistent with, and cumulatively above, predicted all industries and public sector wage growth across the life of the Agreement: the COGG’s proposal represents a cumulative wage increase of 13.5% across the 23/24, 24/25 and 25/26 financial years and against predicted wage growth across the same financial years of about 11.8% or 11.6%; and
(c) from 2015 – 2024, cumulative wage growth at the COGG was 28.6% compared with the WPI Public Sector (22.6%) and all industries (24.8%) indices: in other words, cumulatively, for the last decade, the COGG has paid above market is providing an above forecast wage offer which continues that trend: (see COGG Submissions para 14).
297 Referring to City of Albany at [42]-[43], the COGG submitted its wage proposal balances the competing interests of the WASU, its members employed by the COGG, other COGG employees, the COGG itself, and the community (COGG Submissions para 15).
298 The COGG argued that in contrast, the WASU wage proposal is not supported by the evidence and is and unsustainable. It was submitted the WASU's wage proposal provides for a cumulative wage increase of 19.1% across the life of the Agreement, well beyond predicted all industries wage growth of between 11.6% and 11.8%. The COGG contended the WASU’s claim had been erroneously advanced as “a claim to be had for the asking”: (City of Albany [43] (COGG Submissions para 16)).
299 The COGG submitted that as in City of Albany, increases in wages beyond what has been budgeted for, will result in any one or more of combination of a reduction in the COGG’s total equity, increases in rates, fees and charges or reduction in the quantity or quality of community services: (COGG Submissions para 20).
300 It was submitted that to meet this unbudgeted expenditure, the COGG would need to raise rates (in addition to any rates rises required for other reasons) across the life of the new agreement, reduce services to an equivalent amount or reduce the COGG’s employee headcount: (COGG Submissions para 22).
301 It was contended that in all cases, the community will pay and that because 71% of the COGG’s employees are ratepayers, rate rises or service reductions, to say nothing about headcount reduction, will, inevitably, will have negative impact on the majority of the COGG’s employees (COGG Submissions para 22).
302 The COGG submitted the Commission should make an order setting the wage increases in the new agreement in the percentage amounts the COGG has proposed. It was submitted the COGG’s proposed wage increases are in keeping with forecast wage growth, are fiscally prudent, particularly having regard to the COGG’s functions and revenue streams: (COGG Submissions para 26).
303 The COGG submitted that its wage proposal is consistent with the percentage wage increases in other like industrial agreements (COGG Submissions para 26).
Observations about the evidence
304 Before providing my reasons on the quantum of the wage increases that I regard as reasonable, it is important that I make some observations about the evidence.
305 The first observation I would make is that the credibility and honesty of the witnesses in this matter is not in issue. I accept that cross examination in the main, was for the purposes of clarification rather than challenging the evidence that was given by a witness.
306 Secondly, and despite the submission from the respondent’s counsel, that I should attach limited weight to the evidence from the WASU’s witnesses because some of it was hearsay, I note that much of what they said is consistent with what is contained in the documentary and expert evidence, a point to which I will return.
307 Thirdly, I regard the evidence the Commission received from the individual employees the WASU called as worthwhile. I am with respect, not inclined to agree the Commission cannot extrapolate from the testimony of these witnesses, conclusions that have broader application to, the COGG’s whole workforce.
308 There were some trends that emerged from the evidence WASU’s witnesses gave, which added a qualitative human dimension to Mr Morey’s commentary on housing affordability and the cost of living. The witnesses also provided relatable examples of the staff retention problems the COGG is experiencing that were identified in the Strategic Workforce Plan.
Consideration
309 I accept that among the critical issues that are in play when determining the quantum of the wage increases to apply in the second and third years of the new agreement are the following:
i. Providing a meaningful wage increase to employees that will go some way to addressing cost of living pressures;
ii. Awarding competitive pay increases that will operate as an incentive to attract and retain staff; and
iii. Ensuring that the quantum of any wage increases to be ordered are financially responsible and sustainable.
310 When considering these issues, I do not accept that the role of the Commission when determining an application under s 42G of the IR Act is to prefer one party’s wages proposal ahead of the other.
311 Rather, I consider that when applying the various principles that I earlier referred to in the preceding paragraphs [9] – [11], the Commission is allowed to decide that percentage increases, other than what the parties have proposed, are more appropriate.
Historical position
312 It is in my view, relevant to pay some attention to the approach parties have previously taken to the percentage amounts by which wages were increased. As I observed earlier at paragraph [24], the parties have a well-established industrial relationship.
313 While I accept that each of the previous EBA’s were all shaped by the unique circumstances the parties faced at the time they were made and should not be viewed as a yardstick, as Exhibit A6 (extracted at paragraph [96]) shows, between 2008 and 2024, the parties have negotiated annual wage increases that are on average, 1 – 1.25% above CPI.
314 The sole anomaly in this trend, was when CPI completely outstripped the 1.5% wage increase the parties had agreed would apply from 1 July 2022. I accept that this sharp rise in inflation is ultimately one of the factors, contributing to the decline in the growth of COGG employees’ wages when compared with CPI.
315 In response to this anomaly, I accept that the increases the COGG has paid by agreement from 1 July 2023 and administratively from 1 July 2024 are at the higher end of the percentages the COGG has agreed to pay between 2008 and 2024. While they may be slightly above CPI the increases are below the average 1-1.25% buffer the parties have previously applied.
316 For this reason, I consider that by way of a comparison it cannot be said the wage outcomes the COGG is offering now, are way over and above the percentage wage increases the COGG has agreed to in previous negotiations.
317 I also consider, the evidence in this matter, does not establish the previous payment of wage increases that were on average 1-1.25 % above CPI, placed the COGG in a position that is financially unsustainable.
318 As the WASU’s analysis of the COGG’s annual reports for the period 2013-2023 illustrates, the COGG’s employee costs, in proportion to COGG revenue for the same period, have largely remained the same.
The COGG’s Financial position
319 I accept the COGG is in a healthy financial position. As was revealed its 2022-2023 Annual Report (Exhibit A23) at p 42, the COGG has total assets of $975,093,066 which far exceed its liabilities of $59,043,690. As a result, the COGG has Equity/Net Assets of $916,049,376.
320 While operating expenditure has increased from $82,148,145 in the 2021/2022 financial year to $86,188,679 for 2022/2023, operating revenue has increased from $85,724,275 for 2021/2022 to $92,364,948 in the 2022/2023 financial year: (Exhibit A23 at p 42).
321 In the 2022/2023 Financial Year, the COGG returned an Operating Surplus of $6,176 269, which was up on the surplus of $3,576,130, from the previous financial year. This is despite the COGG predicting in both years that it would record a deficit: (see Exhibit A22 – Financial Statements p 3 and Exhibit A23 – Financial Statements p 3).
322 For the purposes of budgeting, the COGG’s LTFP is underpinned by an assumption that employee costs are to be indexed annually to provide for enterprise agreement wage increases of between 2.5% and 4% over the ten-year life of the LTFP: (LTFP p 15).
323 The LTFP also assumes that increases in rates revenue will be kept to a maximum of 2.5%-3% per annum (plus growth) over the life of the LTFP: (LTFP p 9). While it might be argued the percentages by which wages are forecast to rise are higher than the planned increase in rates, a straight comparison between the two is not that simple.
324 As the LTFP states, the COGG achieves at the higher end of the target band for the ‘Own Source Revenue Coverage Ratio’: (LTFP p 20). There are two takeaways from this.
325 First, it shows that despite the COGG receiving a proportion of its annual revenue from various general-purpose grants, the COGG is not overly dependent on external funding to cover its operating costs (LTFP p 20). Second, it suggests that even with a cap on rates, the COGG is in a strong position to cover its costs through its own taxing and revenue efforts: (LTFP p 20).
326 That said, I am prepared to accept that with either wage proposal, there are limits to the percentage increase that should be ordered. For both proposals, the COGG has prepared budgets that foreshadow operating expenses exceeding operating revenue. However, this needs to be considered alongside the evidence of the COGG’s recent financial performance.
327 Commencing with the 2019-2020 annual report (Exhibit A20), the COGG in its operational results, has financially, performed better than expected. While Mr Radalj was not prepared to concede this trend and information on the COGG’s actual performance in the 2023-2024 financial year, was not available for the arbitration, I am not convinced the evidence suggests the COGG is about to experience a change in fortune.
328 Having regard to the COGG’s recent financial performance, as evidenced in the COGG’s annual reports, it is reasonable to conclude the COGG financially, is not headed on a downwards trajectory. On this basis, I consider that a finding COGG has the capacity to pay a reasonable wage increase, in both the second and third years of the new agreement, may be made.
The interests of the employees
329 From the evidence, there are two important matters which weigh heavily as considerations when determining appropriate percentage wage increases to apply in the second and third years of the new agreement.
330 The first is the need to ensure the percentage increases are sufficient to help the employees deal with the difficulty they are experiencing with the cost of living. The second is the need to ensure employee wage increases under the new agreement, are at level that will operate as an incentive to attract new staff and to retain existing employees.
331 There were two themes, that emerged from the evidence that was given by the employees who the WASU called to give evidence that support this view. The first is that each of the employees who gave evidence, are struggling to make ends meet and (even where they have second jobs) are experiencing hardship with the cost of living.
332 Each of the witnesses who gave evidence described having difficulty in meeting an increase in the cost of rents, mortgage repayments or education expenses. As indicated, their evidence was in my view, corroborated by the expert evidence that Mr Morey gave. The WASU’s witnesses’ evidence on the increased and prohibitive cost of housing in Geraldton, was also supported by the data in the CoreLogic Report.
333 The second theme that emerged is that seeking alternative employment (whether in the mining industry or elsewhere) as means to secure an increase in earnings, is something that is either not available to every employee or something these employees do not want to do.
334 On this, the employees who the WASU called to give evidence, struck me as people who are committed to their employment with the COGG and to the service of the community where they live.
335 During Ms Young’s evidence it became clear that one of the difficulties she was experiencing in is her work is due to the difficulty the COGG is having, in attracting and retaining staff at the Mullewa Office.
336 While leaving employment at the COGG is not something Ms Young is contemplating, her work is plainly something that has been affected by job attraction and retention issues which the COGG is aware of.
337 Put simply, I accept Ms Young’s work is adversely affected because there are less staff to assist her with the work that needs to be done. It follows that Ms Young is either required to do more or there are some services, that she is not able to provide.
338 Job attraction and retention issues were identified during Mr McKay’s evidence as reasons why the COGG has a high turnover of staff in its Horticulture Department. Of particular concern is that younger, skilled employees do not stay because the wages the COGG pays are not competitive with the mining and other industries which the COGG competes with for labour.
339 In summary I accept that any wage increase the Commission orders must be sufficient to address cost of living and but also go some way in assisting with the recruitment and retention of staff.
The Interests of the COGG
340 Some of the employee interests I have identified in the preceding paragraphs are matters the COGG has in common. It is apparent from the Strategic Workforce Plan that the COGG accepts there is utility in having wage rates that are competitive to help the COGG attract and retain staff.
341 While I accept the COGG has an interest in ensuring any increases in wages are kept to sustainable levels, the LTFP acknowledges that an increase in wages to keep pace with cost of living or inflationary pressures, is something for which adjustments to its budget may have to be made: (LTFP p 21).
342 In making any adjustments to its budget, it is my view that an overall wage increase, proportionately above the total amount proposed by the COGG, may be granted without a rates shock or the loss of jobs and the reduction of services, which Mr Radalj pre-empted during his evidence.
343 Noting my earlier observations regarding the healthy state of the COGG’s finances, I am not convinced the COGG lacks the capacity to pay a total wage increase under the new agreement of more than 13%.
344 I do however take the view that disruption to the COGG’s budget for 2024-2025 financial year is not in the COGG’s interest, a point to which I will return before framing the final orders to issue.
The interests of the community
345 I was not presented with any evidence regarding the median income of residents in the COGG or evidence on the cost of an average rates notice.
346 While the evidence shows that council rates COGG residents will pay in the 2024-2025 financial year, were increased by 3.9% (see preceding paragraph [224]) it is still less than the rate of CPI that applied when the rates increases were set: (as per the table from the Morey Report extracted at paragraph [62]).
347 I accept that many of the COGG’s employees are themselves ratepayers and so, they will in effect be contributing towards their own wage increases. I also accept that other employees are residents who contribute to the COGG’s coffers through the payment of fees and charges.
348 However, as in City of Albany at [111], it is in the community’s interest the COGG attracts and retains a workforce that is sufficiently skilled, experienced and capable of delivering services the COGG provides.
349 As an example, I was particularly moved by the evidence that was given by Ms Windsor and Ms McDonald. I regard both witnesses, who work on a part-time basis as performing roles that are essential to the health and wellbeing of their community in Geraldton.
350 While each of the witnesses who gave evidence perform roles that are critical in their own way, Ms Windsor and Ms McDonald with their work in the COGG library, are providing a connection for young families, the elderly and people dependent on Centrelink, who are vulnerable to isolation from their community.
351 There are also times the COGG’s employees need to deal with difficult customers. Ms Windsor and Ms McDonald both gave evidence about having to deal with abuse and aggressive behaviour. Mr Calabrese sensitively gave evidence about how he is required to interact with Geraldton’s homeless population.
352 On balance, I accept that it is in the community’s interest that increases in rates are kept within the range that has been set in the LTFP. That said, there will always be a cost involved for the provision of services to a standard the COGG is required to provide and which the community has an expectation will be delivered.
353 While the quantum of the percentage pay increases to be ordered may result in a recalibration of community expectations regarding the use of the revenue the COGG receives, I am confident, having regard to the recent financial performance of the COGG, that it has the capacity to make these adjustments and to pay the wage increases I am intending to order be paid.
Comparison with the City of Albany
354 I have attached limited weight to the table Mr Radalj provided (Exhibit R7) that compared the rates of pay under the COGG proposal with those paid to employees in the City of Albany.
355 As was revealed during his cross-examination, Mr Radalj was unable to say with any precision, if the duties the COGG’s employees perform at the equivalent levels for the City of Albany, are the same as the duties performed by the COGG’s employees.
356 While the median house price and the cost of rent in Geraldton might be lower than in Albany, there was no evidence regarding comparative wage rates that apply in other industries which the City of Albany competes with for labour. In other words, there was insufficient evidence to explain why the rates of pay that apply in Geraldton are higher than they are in Albany.
357 Even if as a matter of comity, I was required to make an order for the same percentage wage increases from 1 July 2024 and 1 July 2025, which the Senior Commissioner ordered in City of Albany, the COGG’s proposed 3% increase in the final year of the new agreement is less than the 4% the City of Albany was ordered to pay.
358 I accept there are some similarities between the COGG and the City of Albany. However, there are significant differences between the two local councils, which means a likeforlike comparison is not possible.
359 In any event, when determining a matter under s 42G of the IR Act, the Commission is required to exercise a broad discretion, having regard to the circumstances of the case, that is before it. Although there may be some utility in a rates comparison with a similar shire, it is my view the assessment to be made by the Commission in an application under s 42G is far more nuanced.
The WASU’s wage proposal
360 As set out earlier, the WASU wage proposal advances a claim for the COGG to pay a 6% wage increase in the second and third years of the new agreement, resulting in a cumulative increase of 18% over the life of the new agreement.
361 In balancing the competing interests of the WASU, its members who work for the COGG, the COGG’s other employees, the COGG itself and the community, I am not persuaded a cumulative increase to this level is justified.
362 A 6% wage increase from 1 July 2024 would be well over and above the 4.6% figure for All Industries WA WPI Growth and the 3.1% for Public Sector WPI Growth: (see table at paragraph [58] as extracted from the Morey Report).
363 It would also exceed CPI of 4.6% for the 2024 September Quarter; (see table at paragraph [62]). A 6% increase would also be above the average historical buffer of 1-1.25% the COGG has paid previously, which I described in the preceding paragraphs [314] – [315] above.
364 A 5% wage increase from 1 July 2024, while not as high as the quantum sought by the WASU, would provide a better outcome for employees than the increase the COGG is proposing to pay. The WA Treasury and CCIWA have also forecast that WPI will likely fall, respectively predicting WPI growth of 3.75% during the 2024-2025 financial year.
365 The COGG is, under both the WASU and the COGG wage proposals, forecast to go into deficit. The scenario that is predicted for the WASU’s wage proposal is understandably more pronounced and as it was not challenged by the WASU, has caused me to approach the percentage wage increases sought by the WASU with caution.
366 In addition, the WASU did not challenge the COGG’s evidence that it had decided to pay employees who were previously classified as Level 2s at the higher Level 3 rate or that it had done this, to provide cost of living relief.
367 Despite this, I do not consider the COGG’s wage proposal adequately addresses the matters that in my view, justify a higher total wage outcome than what is in the COGG wages proposal.
The COGG’s wage proposal
368 It is my view the COGG wages proposal is deficient in several respects. Firstly, the proposed 4% wage increase from 1 July 2024 is less than CPI of 4.6%: (CPI as appears in the table extracted at paragraph [63]).
369 Second, a 4% wage increase is less than the figure of 4.6% for WPI Growth - All Industries WA: (WPI as appears in the table extracted at paragraph [58]). As a means to attract and retain staff, a 4% increase falls short of the mark, as it would not be keeping pace with increases payable in other industries, which the COGG must compete with, for staff.
370 As an increase, I accept that a 4% rise is at the upper end of the annual 2% - 4% by which the COGG under its LTFP, indexes its annual wages costs. However, an increase in this range does not completely deal with the need to raise wages in response to inflationary pressures, which the COGG has foreshadowed in its LTFP, as something it may also need to do: (LTFP p 21).
371 The difficulty I have with the COGG’s wage proposal is that cumulatively, it will not, following the sharp rise in inflation that occurred in 2022, put the COGG’s employees back into the position where their wages have kept pace with the cost of living. In my view, this problem would be addressed with the awarding of a percentage increase of 5% in the second year of the new agreement, to apply from 1 July 2024.
372 While a 5% increase from 1 July 2024, in combination with the 6% wage rise the parties have agreed would apply from 1 July 2023, will not completely restore the gap between wages growth and inflation, that widened significantly in 2022, a cumulative increase of 11%, would at least put wage increases slightly above CPI in the first two years of the new agreement.
373 The COGG’s proposed 3% increase for the third and final year of the new agreement is similarly deficient. Although the Morey Report contained no data on CPI for the increase to apply from 1 July 2025, WA Treasury and the CCIWA have predicted WPI growth in the range of 3.25% - 3.5%: (see table extracted at paragraph [59] as extracted from the Morey Report).
374 From this data, it is reasonable to conclude that even if CPI falls, on current projections, the COGG’s proposed 3% wage increase will be less than increases that are being paid by the other employers the COGG must compete with for labour.
375 Having made these observations, it is my view that if a 5% increase was to be ordered to apply from 1 July 2024, then the quantum of the percentage increase to ensure wage increases remain competitive, for the final year of the new agreement would need to be set at 4%.
The timing of the increases with the COGG’s Budget
376 I accept that making an order for a 5% wage increase to apply from 1 July 2024, has the potential to disrupt the budget the COGG has approved for the 2024-2025 financial year.
377 I also accept that the hearing of this application occurred after the COGG’s council had endorsed its annual budget and made decisions on the rates, fees and charges the residents would be required to pay in the 2024-2025 financial year.
378 Knowing the WASU was seeking a 6% wage increase to apply in the 2025-2026 financial year, the same cannot be said if the Commission was to order that a 5% wage increase should apply from 1 July 2025.
379 In other words, I take the view the COGG’s budget and planning schedule will be less disrupted and the COGG will be in a better position to provision for the 5% increase, that I consider is justified for the second year of the new agreement, if it is deferred for a year.
380 By flipping the dates from which the two increases will apply, so that the 4% wage increase the COGG is currently paying will apply from 1 July 2024, (which in the usual course I would have ordered for the final year of the new agreement) with the 5% wage increase I regard as appropriate for the second year, the COGG’s employees will still stand to benefit from same cumulative result.
381 The COGG’s and the community’s interests will also be served by timing the increases in the way I have foreshadowed, as it will minimise disruption to the COGG’s budgeting process and provide the COGG with a reasonable opportunity to provide the community with an explanation for the quantum of the wages increases to be paid to its staff.
382 It will also afford the COGG with an opportunity to find the means to avert any job losses or reductions in services, if in fact those threats ring true. I say this, because I have found it difficult to reconcile the evidence of the COGG’s recent financial performance with suggestions from Mr Radalj, that job losses and reduced services are likely, even if the Commission was to order the percentage increases in salary, under the COGG’s wage proposal.
383 By deferring the second wage increase of 5% until the third year of the new agreement, the COGG will have a chance to re-evaluate its budget priorities, thereby ensuring its stated commitment to providing wage increases that are competitive and which, address the cost-of-living pressures the COGG’s employees are facing.
Conclusion
384 For all of the reasons I have provided in the preceding paragraphs, I consider the new agreement should make provision for two further wage increases in the second and third years as follows:
a. 4% increase to be applied on and from 1 July 2024 to 30 June 2025; and
b. 5% increase to be applied on and from 1 July 2025 to 30 June 2026.
385 Having regard to all of the evidence and my consideration of the principles that I earlier referred to in paragraphs [9]-[11], I have concluded the percentage increases to be applied will provide meaningful wage increases to assist employees in dealing with cost-of-living pressures.
386 I also consider the quantum of the increases are justified as a measure to help the COGG deal with its acknowledged staff attraction and retention issues.
387 In determining the quantum of the wage increases to be paid, I have sought to responsibly balance the interests of the WASU and the COGG’s employees with the interests of the COGG itself and the community.
388 It is my view the quantum of any wage increases to be paid are at a financially sustainable level and the COGG has the capacity to pay these increases.
389 I will accordingly make orders to register the new agreement, which will include terms on the quantum of the pay increases to be paid in the second and final years of the agreement.
390 To this end, I intend to hear from the parties on the form of orders to issue and the steps to be taken next, for the registration of the new agreement.