Wage dispute engulfs Sydney Water

By CHRISTINE LAI

Essential workers at Sydney Water have lodged a dispute with the Fair Work Commission on Friday morning following the breakdown of enterprise agreement negotiations earlier last week.

Employees have voiced concerns over alleged aggressive pay and condition cuts and the implementation of secretive WorkChoices style contracts on more than half of Sydney Water’s workforce.

There are over 3000 employees at Sydney Water who have been subjected to management’s proposed cuts, which, according to The Services Union (ASU), would make it the “worst Agreement in the entire water industry” – worse than any other private or public entity currently operating in the industry.

The potential implications of this proposal, including a significant reduction in wages and benefits, have drawn attention, particularly as the cost of living crisis adds further strain to the situation.

The essential service supplies 5.3 million customers in Greater Sydney, the Blue Mountains and Illawarra.

According to Deputy Secretary of the Australian Services Union (ASU), Jan Primrose, Sydney Water’s managing director had failed to attend any enterprise bargaining meetings during the negotiations process.

This absence served as a clear indication of the strained relationship between the management and the employees, and Primrose asserted, “the relationship between the people who work at Sydney Water and senior management has never been worse.”

“Managing Director, Roch Cheroux, has not bothered to turn up to a single enterprise agreement meeting with workers. That gives you a sense of how bad things are,” says Jan Primrose.

“Long term skilled workers are leaving, and morale is at an all-time low. Sydney Water is a great public asset, but it is being dragged backwards. These workers are essential to keeping our water clean, and our beaches pristine”, Primrose said.

Commenting on the industrial dispute and the possibility of strike action, Premier Chris Minns said it will be a “rocky road”.

“We don’t welcome it but unfortunately it’s part of the process.”

Salvos survey indicate rising living pressures 

The industrial dispute comes amid escalating living costs and leaves Sydney Water staff in a difficult position. Last month, the Salvation Army released data that reflected the continued cost of living pressures on vulnerable individuals, with over half of the surveyed population struggling to pay their bills on time.

The survey gathered responses from more than 1700 individuals who accessed the Salvation Army’s services and found that 25 percent of them were reducing heating usage, and 60 percent were cutting back on showers to manage their expenses.

Additionally, in June, the Anglicare Australia’s Living Costs Index published figures revealing the dire financial situation for many workers.

For a full-time worker earning the minimum wage, after covering essential weekly expenses, they were left with $57. Meanwhile, single parents earning the minimum wage faced an even more significant challenge, finding themselves in a $180 deficit on a week-to-week basis.

Sydney Water’s most recent enterprise bargaining agreement took place in 2021, spanning over a two-year period.

During enterprise bargaining in 2021, The ASU denounced Sydney Water’s management who initially offered essential workers a 1% increase, below the announced 2.5% increase to public sector wages under the previous Berejiklian government.

The enterprise agreement resulted in a 2.04% wage increase for Sydney Water employees.

According to the ASU, no other public sector employer required employees to accept reduced conditions before providing them with a 2% pay increase at the time.

“At the last election the NSW public voted to protect Sydney Water. Literally the first thing the new Labor Government did was enshrine Sydney Water in our constitution,” Primrose said.

“The people of NSW who are the owners of Sydney Water deserve better and so do the workers who have been delivering Australia’s safest water.”

Sydney Water management respond to EBA negotiations

A Sydney Water spokesperson told City Hub that they were committed to working with unions to offer the best possible deal to staff in order to retain exceptional talent and capability within the organisation.

According to Sydney Water, following extensive benchmarking, staff are paid above market rates and management has proposed an 11 per cent increase over three years.

“Included in negotiations are a number of exclusive staff benefits including flexible working arrangements and maternity leave provisions”, the spokesperson said.

The spokesperson stated that Sydney Water respects the role unions play in all negotiations and finding a resolution remains a top priority.

When asked whether there had been any previous instances of disputes or conflicts between Sydney Water and its workers regarding labour conditions or agreements, Sydney Water failed to offer a response to City Hub.

Sydney Water hopes an agreement can be reached through the conciliation process.