WANGARATTA council has defended its decision not to take up a federal government grant that would increase the pay of early childhood workers.
The Australian Services Union (ASU) has criticised the Rural City of Wangaratta and four other Victorian council for rejecting the Early Childhood Education and Care (ECEC) Worker Retention Payment Grant, designed to support and retain early childhood educators during a sector-wide crisis.
The grant runs for two years and funds a wage increase of 15 per cent above the modern award rates, and a minimum additional 20pc funding for eligible on-costs (calculated against their base funding).
The AEU says the funding was intended to alleviate financial pressures, improve workforce stability, and ensure families have access to high-quality early learning.
ASU secretary Tash Wark said it's a fantastic opportunity for council to demonstrate its commitment to a female-dominated workforce performing invaluable work in the community, who are among "some of the lowest paid workers in local government".
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"It’s disgraceful that these councils would reject financial relief for workers who are struggling with the rising cost of living and burnout," she said.
Under the conditions, if councils access the grant they are unable to increase fees for the life of the grant (two years).
Rural city director of community and infrastructure, Marcus Goonan, said management consulted directly with staff who confirmed the grant would not be a fair way to proceed.
"Council’s priority is to maintain a fair, sustainable, and supportive environment for all our educators," Mr Goonan said.
"We value their contribution immensely and are proud of the high-quality service they deliver to our community.
"After careful consideration, council chose not to apply for the ECEC Worker Retention Payment Grant due to its narrow eligibility, inequitable application across our workforce, and unsustainable long-term impact once federal funding ends."
Mr Goonan explained that the grant would have applied to only a small number of staff and not covered all hours worked.
He said accepting it would have reduced benefits for some educators, not improved them.
"Educators at the Wangaratta Children’s Services Centre already receive above-award wages, paid training leave, Christmas/New Year closure, access to the Employee Assistance Program, and enhanced staffing ratios that promote breaks and work-life balance," he said.
"We consulted directly with our team, and their feedback confirmed the grant would not support the broader workforce fairly or sustainably."
Mr Goonan said council remains committed to working with the union and all levels of government to deliver lasting, equitable support for the early childhood sector.
