City of Nedlands faces fresh controversy after union claims staff underpaid for six years

A union representing employees from the City of Nedlands claims staff have been underpaid for several years but the city has not taken steps to rectify it despite knowing about the issue for at least five months. Australian Services Union WA (ASUWA) assistant secretary Jill Hugo said there were current and former employees at the city who had not received agreed pay increases in 2020. “The ASU understands some staff members have been underpaid for several years, with the agreed pay increases from 2020 still not implemented,” Ms Hugo said. Ms Hugo said the ASU contacted the city in June about the matter and was told it would be treated “as a priority”. A month after bringing the issue to the city’s attention, the council was dismissed following a mass resignation of its councillors. This led to the appointment of three commissioners to step in and carry out the council’s duties over the next seven months. Ms Hugo said the new administration had since acknowledged the issue and had been working with the ASU to identify the extent of the underpayments. But five months later the issue is still unresolved — which Ms Hugo says has now become a matter of “urgency”. “While we’ve chosen to work collaboratively with the new administration to fix the mistakes of the past, if this matter is not resolved promptly, we will consider taking legal action on behalf of our members,” she said. Ms Hugo said it was unclear how many employees were affected but said it affected both current and former staff. “The city has a legal obligation to review and correct underpayments going back up to six years, and we expect that to occur without delay,” she said. The City of Nedlands said an external investigation into the 2020 EBA is underway but claimed it does not yet have definitive information on the number of staff affected or the costs involved. “We are currently reviewing the implementation of the 2020 increase to establish the course of action that was undertaken,” a City spokesperson said. “We are committed to addressing any issues identified through the investigation and will take appropriate steps to rectify them.” It comes just weeks after city CEO Keri Shannon announced she would be taking immediate and indefinite leave following a confidential performance review meeting. Local government stalwart Arthur Kyron has since been brought in as new acting CEO. The western suburbs council made headlines again this month after it was revealed former chief executive William Parker is suing the city for defamation over a report into the council’s failed 2023 financial audit. The now-City of Wanneroo chief claims the city defamed him in an October 2024 report investigating the causes behind the audit failing. He alleges the 34-page report was defamatory, had damaged his reputation, and caused hurt and distress.