Determination of wage and allowance increases in a Local Government Agreement

The City of Albany and the Western Australian Administrative, Clerical and Services Union of Employees jointly applied to register the City of Albany Industrial Agreement 2023, and made application for the Commission to determine wage rate increases and monetary allowances.

The parties agreed on most terms of the proposed 2023 Agreement but differed on wage increases, allowance adjustments, and post-nominal expiry date provisions. The Union advocated for higher wage increases and post-expiry wage increases linked to Perth's Consumer Price Index (CPI), citing consistency with past agreements and the need to counter rising living costs. They highlighted the City's financial strength and positive economic outlook as supporting factors. Conversely, the City proposed fixed percentage increases, citing budgetary certainty and the volatile inflationary environment.

Regarding allowances, the Union sought increases on July 1 of 2023, 2024, and 2025, based on wage adjustments or Perth CPI, citing past practices. However, historical evidence revealed variations in past agreements, with some providing fixed increases or CPI-based adjustments. Concerning post-nominal expiry date increases, the Union proposed a clause for inflation-linked wage increases if no new agreement was reached or initiated by the City after the nominal expiry date. However, the City opposed this, citing past challenges and potential hindrances to bargaining efforts. 

Senior Commissioner Cosentino made orders that the Agreement include annual wage increases of 4.5%, 4% and 4% across three years, a one-off payment for Outside Employees, wage-related allowance increases corresponding to wage increases, and expense related allowance increases in accordance with annual changes in expenses. The Senior Commissioner decided against the inclusion of post-nominal expiry date increases, noting that such clauses could impede bargaining.

 

The decision can be read here.

Decision issued Tuesday, 14 May 2024.