Greater Dandenong’s library staff, parking inspectors and rubbish collectors are set to vote on a potential strike from next month, with their union arguing that ratecapping suppressed workers’ wages.
On 10 March, Australian Services Union successfully applied at the Fair Work Commission for workers across eight Melbourne councils to take a ballot on protected industrial action.
ASU branch secretary Tash Wark said the union was filing for the action to “begin striking in April”.
“Our council workers provide vital services that we rely on every day, including libraries, waste, street cleaning, aged care and early childhood services.
“We don’t want to have to stop work, we’re stopping work as a last resort because for too long, our members have been forced to do more for less.”
According to the ASU, Greater Dandenong council worker wages have increased 11.2 per cent between 2021-’25 but not kept pace with inflation.
It argues that real wages in that time have decreased by 7.3 per cent.
“Council workers perform essential work that when done well is invisible, but the public really notice when it stops,” Wark said.
“We’d ask the public to back the workers that back them – and demand the councils and state government invest in local government workers.”
ASU has argued that the State Government’s ratecapping policy which limited rate rises to 2.75 per cent for 2026-’27 had tied councils’ hands during the multi-council wage bargaining negotiations.
“Outdated ratecapping policy and state government funding levels … has meant council funding has flatlined, gone backwards while demand for essential services has soared,” Wark said.
“The government needs to take action to restore support for essential services.”
On 10 March, FWC deputy president Andrew Bell noted ratecapping was “largely outside the remit of the councils themselves”.
“I also have little doubt that, as bargaining progresses, the Councils will be raising their funding constraints as an answer to the ASU’s (and other unions’) wage claims.
“I consider that the wage claims and funding constraints are, in a real sense, flip sides of the same coin.”
According to the State Government, the rate cap was in line with the Consumer Price Index for 2025-’26 – while the eight councils involved had a healthy surplus of at least 10 per cent of revenue at the end of the past financial year.
“Our rate cap is providing real cost of living relief for Victorians with rates rising by an average of 6 per cent per year before it was introduced,” a State Government spokesperson said.
“We expect the union and council to both engage in the bargaining negotiations in good faith.”
The dispute sparks memories of a notorious ASU action in 2012, which led to overflowing street bins miring Springvale and Dandenong CBDs in uncollected garbage.
During the bitter dispute, the council unsuccessfully tried to hire a private contractor to clean the streets, but they were turned away by the ASU.
Greater Dandenong acting chief executive Sanjay Manivasagasivam said the council respects the right of employees to participate in protected industrial action.
“The eight councils involved in this process are committed to good faith negotiations and are working efficiently towards an agreement.”
Background
At the end of the Financial Year 2024-25, all eight Councils involved in this Multi-Employer Bargaining agreement enjoy a healthy surplus of at least 10 per cent of their total revenue.
Councils may apply for a higher rate cap if they can demonstrate community support and a critical need for spending on services or projects that require a rate rise above the capped amount.
