Townsville City Council CEO Joe McCabe has responded to recent statements by the Australian Workers' Union (AWU) regarding Council's ongoing certified bargaining negotiations.
Mr McCabe said he wanted to clarify the facts following claims by AWU Northern District Secretary Jim Wilson that Council's wage offer for Stream B employees would not deliver an $18 per week pay increase.
"In reality, our current wage offer for Stream B employees which includes labourers, plant operators, and other field staff - equates to an average increase of 7.66% in the first year. This translates to an average annual increase of $4,556.45, or approximately $87.62 per week," Mr McCabe said.
"Council's offer to Stream B workers consists of a $1,500 base uplift, plus a 5% wage increase, which is deliberately targeted at putting more money in the pockets of our lowest-paid outdoor workforce."
For Stream C employees - which includes electricians, diesel fitters, and other tradespeople - Council's offer equates to a first-year increase of 14.61%, representing an average annual increase of $8,682.52, or $166.97 per week.
"Stream C roles are significantly impacted by regional and state-wide skills shortages. Council must compete in a tight labour market for qualified tradespeople, and this offer is designed to attract and retain the critical workforce needed to deliver services for the community."
Stream A employees - which cover the indoor workforce - have been offered a 5% increase in the first year, equating to an average annual increase of $4,262.85, or $81.98 per week.
"This is a fair and reasonable increase for our administrative and professional staff, recognising their contribution while remaining financially responsible," Mr McCabe said.
In addition to the first-year increases, all three streams have been offered 3% wage increases in both the second and third years of the proposed three-year agreements.
Council's wage offer is structured to reflect the diverse nature of its workforce. The offers are shaped by a combination of the Councils financial position, labour market pressures, and the need to support both attraction and retention across all streams.
"We've taken a targeted and considered approach," Mr McCabe said.
"Stream C offers respond to highly competitive labour markets for trades; Stream B recognises and uplifts our lowest-paid field-based workers; and Stream A ensures fairness for our indoor staff."
Overall, the proposed offer represents a $21.78 million increase to Council's wages over the next three years.
"We know many in our community are doing it tough. This offer balances fairness for our staff with our obligation to maintain sustainable service delivery and keep operational costs reasonable for ratepayers," Mr McCabe said.
"Contrary to Mr Wilson's claims, Council has not proposed any wage increase as low as $18 per week. Our offer begins significantly above that and is based on sound financial principles. The AWU's claim for a 20 percent uplift to the base wage—before negotiating wage increases for years 1, 2, or 3 of the proposed agreement – is not financially sustainable and would not align with community expectations."
The CEO also addressed the AWU's statements about Townsville's rates.
"Townsville City Council was benchmarked below the Queensland average for rates in 2024/25. Benchmarking data has been publicly available on our website since July 2024. A similar comparison will be completed for 2025/26 once all councils have finalised their budgets," he said.
"Council's priority is delivering a fair and financially responsible agreement that reflects our values, supports our people, and protects the services that our community relies on."
Townsville City Council employee benefits include a nine-day fortnight, 17.5 percent annual leave loading, up to 13.5 percent superannuation and five weeks annual leave.
