Council & Business
20 February, 2026
New agreement sees higher pay for local council staff after two year legal battle
Following almost two years of legal objections and hearings, a multi-employer agreement between the Central Goldfields and Ararat councils has been approved — a first for the local government sector.
The multi-employer agreement between Central Goldfields Shire Council and Ararat Rural City Council has been approved by the Fair Work Commission and is now in effect.
The agreement will increase wages for almost 400 workers in the region and marks the first time an agreement of this type has been successful in local government under new federal laws.
Fair Work’s approval of the agreement marks the culmination of almost two years’ bargaining, with the Australian Services Union (ASU) first approaching the Central Goldfields Shire Council in March 2024.
Despite a majority of staff voting in favour of the agreement the council objected, lodging appeals to both the Fair Work Commission and later in the Federal Court on the grounds it would not be in the public interest. The objection was dismissed in both instances.
Council’s former interim CEO Sally Jones previously told The Advertiser they had also objected as there was not “sufficient clarity” around what the bargaining process would entail and a belief the ASU had delivered a “false narrative” around pay increases.
The three-year agreement locks in:
• Central Goldfields Shire Council workers will receive a three percent or $50 per week pay increase (whichever is greater) each year for the three years.
• Ararat Rural City Council workers will receive a four percent or $55 per week pay increase (whichever is greater) in the first year, followed by 3.5 percent or $50 per week (whichever is greater) for the next two years.
While the Central Goldfields Shire Council was against the agreement from its conception, CEO Peter Harriott thanked staff for their input.
“Council welcomes the approval of the enterprise agreement recently finalised between the Central Goldfields Shire, Rural City of Ararat and relevant unions,” he said.
“Council thanks all those that participated and for the many hours put in by staff and union officials to bring this about.”
While the Fair Work Commission has only recently approved the agreement, an ASU spokesperson previously told The Advertiser that both councils had begun backpaying staff.
“This is a massive moment for local government workers everywhere,” ASU Victorian and Tasmanian branch secretary Tash Wark said.
“This was the first contested application nationally under the new industrial relations laws.
“Workers took the lead through a majority support petition, proving that when workers stand together, they can fundamentally reshape their bargaining power.
“Despite being challenged all the way to the Federal Court, our members remained resilient, and approval by the Fair Work Commission validates their deter-mination to win better standards across local government.”
The MEA expires on June 30, 2027, with the ASU already preparing for renegotiations.
Ms Wark said it is a template for better staff conditions across local government.
“This landmark deal for Ararat and Central Goldfields ensures that regional council workers are protected with strong wages and conditions,” she said.
“By bargaining as a group, we have secured pay increases and conditions, including nine-day fortnights and industry-leading redundancy provisions that often exceed what individual councils offer in isolation.
“This agreement isn’t just a win for our current members, it’s a template for a fairer future where regional workers are paid a fair and decent wage and conditions and safety at work.”