Launceston council workers rejected an enterprise bargaining offer put forward by management via a voting process late last week.
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Australian Services Union (ASU) organiser Kath Ryman said the council’s proposed EA was “extremely disappointing”.
“One of the big concerns is that council have refused to allow any workplace matter to be included in the EA disputes clause,” she said.
“Another major issue is that council are proposing a four-year agreement with a measly pay increase or Hobart CPI… we all know that the CPI is not forecast to increase in the near future.”
City of Launceston acting general manager Michael Tidey said the council considered the proposed agreement to be fair and reasonable in the current economic environment in Northern Tasmania.
"Although there was a close ballot, with 45 per cent in favour of the proposed agreement, a majority vote was not obtained,” he said.
“The council will continue with negotiations and will advise employees on the next steps in due course."
The ASU said the recent flood crisis showed council workers were willing to go over and above in the course of their working day.
“We are talking about a loyal and hardworking workforce who is merely asking for recognition of their dedication through a fair deal,” said Ms Ryman.
“Workers took an annual two per cent pay increase over the last three years on the promise that if the workforce tightened their belts to benefit council there would be a better increase in this agreement.”