The City of Joondalup (the City) and the Western Australian Municipal, Administrative, Clerical and Services Union of Employees (WASU) applied to the Commission under s 42G of the Industrial Relations Act 1979 (IR Act) to register a new industrial agreement called the City of Joondalup Inside Workforce Industrial Agreement 2022, to cover the City’s inside workforce.  

The parties had reached an agreement on all terms except for the percentage of annual wage increases to be applied in 2022, 2023, and 2024, and whether a cap should be applied to the maximum total contribution to superannuation paid by the employer where an employee makes voluntary superannuation contributions. The applicants sought registration of the agreement in the terms the parties had agreed upon, together with any other provisions as ordered by the Commission.

The City proposed a 4% annual wage increase for three years, totalling 12%. The City argued this proposal was comparative to other local governments, wage price index changes and within the City’s capacity to pay. For contributions to superannuation, the City proposed maintaining the existing caps of 15.5% and 14.5% for employees hired before and after 26 March 2002, respectively.

WASU sought higher increases of 7.6% from 1 July 2022, 6% from 1 July 2023, and 6% from 1 July 2024, totalling 19.6%. It justified its claim based on a missed wage increase during the COVID-19 pandemic  in 2020, high increases in the cost of living, and the employer’s ability to afford the increases. For superannuation, it proposed removing the existing cap, effectively increasing the maximum contribution to 17% and 18%.

After considering all of the evidence presented over the course of the hearing, Senior Commissioner Cosentino concluded that employees were entitled to a pay increase which took into account a ‘good will credit’ resulting from an earlier agreement to a wage freeze in 2020. The Senior Commissioner was not persuaded that the cap on superannuation matching contributions should be removed. The Senior Commissioner Cosentino ordered that the City of Joondalup Inside Workforce Agreement 2022 include:

• Wage increases of 5% from 1 July 2022, 4.5% from 1 July 2023, and 4% from 1 July 2024.
• Voluntary superannuation contribution matching up to a maximum of 3% of the employee's ordinary time earnings.

 

The decision can be read here.