In December 2023, amendments to the Local Government (General) Regulation 2021 (Regulation) came into effect to provide additional protections for workers employed in the waste industry in circumstances where local councils tender for all waste and resource recovery service contracts. Prior to the changes, these protections were confined to collection services.

Where local council tenders for waste management contracts, tenderers must now undertake to offer employment to existing employees on at least the same terms as their current employer and with no loss of entitlements. This also applies where services are provided by council staff. Tenderers must also agree to provide annual pay increases based on the applicable industrial instrument, or Local Government (State) Award if one does not exist.

Ron Hoenig, Minister for Local Government, noted in his ministerial press release that there had been a number of examples in recent years of changes to waste management contracts resulting in employees being offered the same roles, but with lower pay and lost entitlements. “These changes will prevent waste contractors from undercutting during tenders and winning contracts on the basis of paying workers less if their employment changes”, Hoenig explained.

The Office of Local Government has committed to providing support to local councils who have waste management tenders in the works to ensure that the new requirements are complied with. While intended to protect employment conditions, these amendments are far reaching and potentially onerous for potential tenderers. It is not yet clear whether the new requirements are capable of being achieved.

Madeleine O’Connor