ASU Slams Derwent Valley Council’s “Stinky” Wage Offer

The Australian Services Union has initiated industrial action against the Derwent Valley Council, calling their latest wage proposal “dismal” and unfair to local government workers.

Media release – Australian Services Union VIC/TAS Branch, 28 August 2025

This wage offer stinks and so will the streets: ASU slams Derwent Valley Council – Australian Services Union Vic Tas

The Australian Services Union VIC/TAS Branch says the pay offer put to workers by Derwent Valley Council stinks and shows a complete disregard for the vital work local government employees do.

From Thursday 28 August, ASU members will commence protected industrial action that will disrupt childcare, street cleaning, fire prevention works, and other key community services.

“Council workers do everything from caring for children, cleaning the streets, collecting waste, even removing dead animals from roads,” ASU Branch Secretary Tash Wark said.

“The only thing that stinks more than uncollected rubbish is this dismal offer.

“Council workers are the backbone of local services. They care for our children and keep our neighbourhoods liveable by cleaning up our streets. Yet their wages haven’t kept pace with the cost of living while councillors and executives look after themselves with pay rises. That’s simply not right.

“Derwent Valley Council has a choice, continue down the path of disruption and service cuts, or respect the people who keep the community running with a fair pay offer,” Wark said.

The industrial action includes:

• • A full work stoppage across Council sites until 10:30 Thursday.
  • Indefinite bans on issuing fines, collecting fees and rates, and processing invoices.
  • Indefinite bans on street cleaning, toilet cleaning, mowing, litter collection, and fire prevention works.
  • Indefinite bans on overtime, maintenance, and contractor coordination.

The ASU says these actions are a last resort after months of stalled negotiations and that the dispute at Derwent Valley Council highlights the broader crisis facing Tasmanian councils.

“Councils across Tasmania are struggling to deliver services because of recruitment and retention issues. But by refusing to meet basic wage and condition claims Derwent Valley Council are only making the problem worse.

“These challenges begin at every single bargaining table, but they go much further,” Wark said.

The ASU are asking Derwent Valley Council for:

• • A fair pay rise of 4.5% or CPI (whichever greater), backdated to 1 July 2024.
  • Protecting Early Childhood Education & Care staff so grant funding doesn’t erode the wage offer.
  • Rolling the Objectionable Conditions allowance into base salaries.
  • Rejecting Council’s bid to reduce existing span-of-hours conditions.

“Working together, councils, unions, and governments can and must deliver fair pay and conditions that will attract and keep the staff needed to support our local communities,” Wark said.

Media release – Derwent Valley Council, 28 August 2025

Industrial action disrupts Council childcare services

The Derwent Valley Council says industrial action by the Australian Services Union (ASU) impacted the Valley Children’s Centre this morning, forcing a temporary closure of the service until 10:30.

The industrial action continues Enterprise Agreement negotiations that have been ongoing since May 2024, with wage increases remaining the final unresolved item.

“Council is disappointed that its good faith bargaining has reached this point, particularly given the impact on families who rely on our childcare services,” General Manager Ron Sanderson said.

The Valley Children’s Centre was closed from 07:00 until 10:30 due to staff participating in protected industrial action.

This closure affected:

• Before School Care Program
• Long Day Care services

Normal operations resumed from 10:30am with all rooms appropriately staffed to provide care.

“This decision to close the Centre was not taken lightly, however we have a duty to provide children with suitably qualified staff who meet the required ratios under our service approval,” Sanderson said.

Council has been negotiating its Enterprise Agreement with employees and the ASU since May 2024, with negotiations now in their final stages.

Key points in the current negotiations:

• Council’s position: Offering a 2.5% wage increase, which exceeds the current annual inflation rate of 1.4% recorded for Hobart
• Union demand: Seeking a 5% wage increase for staff
• Final stage: Wage increase remains the only unresolved item, with Council intending to finalise negotiations and put the matter to a vote within coming weeks

“Council’s offer of 2.5% is reasonable and responsible, particularly when compared to the current inflation rate,” Sanderson said.

“Council’s approach to wage negotiations reflects its broader fiscal responsibilities to the community.

“We have been required by both the Auditor General and our independent Audit Panel to improve our cash reserves. This year we implemented a 6% rate increase specifically to help meet these financial improvement requirements.

“Council must balance its obligations to employees with its financial responsibilities to ratepayers and the long-term sustainability of services.”

Sanderson rejected suggestions Council had refused to engage with the union.

“Council has been working constructively with the ASU throughout this process. Claims that we have refused to meet with the union are misleading and inaccurate. We have maintained ongoing good faith bargaining on all ASU claims, always considering how we can best serve both our community and our employees while remaining mindful of Council’s financial position.

Council has also referred unprotected industrial action taken by childcare staff yesterday to the Fair Work Commission for appropriate resolution.

“We sincerely apologise to parents and families for the disruption this industrial action has caused,” Sanderson said.

“The Valley Children’s Centre provides a vital service to working families in our community, and we understand the inconvenience this closure created.

“While Council respects our employees’ right to take protected industrial action, we remain committed to reaching a fair and sustainable resolution.”

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