Paul Funnell proposes council staff wage cuts, freezes amid coronavirus downturn

Councillor Paul Funnell has suggested all staff forgo their annual salary increase and higher paid workers take pay cuts of between 10 and 20 per cent to help remedy the council's projected $4.4 million deficit.

Cr Funnell said so far his notice of motion to council only included the wage freeze, but he was considering adding the cuts based on community feedback.

Wagga's Services Union organiser Jed Lawton slammed the timing of Cr Funnell's motion.

Mr Lawton said the NSW public sector was in the sensitive final stages of negotiating wage conditions for the next three years.

"We need to get this award fixed in place so once we come out the other side of this virus things can get back to reasonably normal then," he said.

Wagga councillors will have to come up with a solution to the city's budgetary woes before the end of the financial year.

Mayor Greg Conkey said council was "looking across the board" for ways to remedy the city's projected $4.4 million deficit.

Cr Conkey said council would save about $250,000 from its controversial decision to no longer provide Family Day Care licences.

He pointed to a further $1 million that could be moved from Riverina Water, which he said was "flush with funds".

Cr Conkey said council staff were working on a number of reports looking into more cash-saving options for next year's budget.

Council, he said, had "gone out of its way to waive fees and charges for people".

"We're trying to keep this economy ticking along as best we can, bearing in mind that we've taken a huge hit," Cr Conkey said.

Councillor Paul Funnell has suggested all staff forgo their annual wage increase from July.

Cr Funnell, whose motion will be up for debate at a council meeting later in May, estimated his wage freeze idea would save about $1.6 million.

"Every other sector in the community, the economy, has taken a massive hit. It's pretty self-explanatory in my opinion, we've got hundreds of thousands [of people] unemployed," Cr Funnell said.

COVID-19, he said, had sent the economy "to hell in a hand basket" and council staff were "privileged" to have maintained their job security.

Cr Funnell said council spent about $40.3 million each year on wages, from the $40.9 million it generated from rates.

Cr Funnell may also propose pay cuts for higher-paid council staff for the next financial year.

Under this plan, staff earning $80,000 or less each year would have their wages frozen, while staff earning between $80,000 to $180,000 would take a 10 per cent pay cut. Staff earning more than $180,000 would have their pay cut by 20 per cent.

Cr Funnell said he would listen to community feedback and finalise his submission by Monday.

He was confident his motion would be seconded and said, if passed by council, he would push for it to be put before the NSW Parliament.

"The vast majority of Wagga council employees are doing the job they're paid to do ... I'd need to look at the finer print and its impact on staff members," Cr Conkey said.

Councillor Rod Kendall said council was looking across "all areas of operations" in formulating next year's budget.

Cr Kendall said the complexities of enterprise agreements would mean council could spend more money pursuing Cr Funnell's idea "fighting in industrial court" than it would potentially save.

"All staff are employed under a contract or an award ... they're bound by [it] to us, the same way we're bound to them," Cr Kendall said.

"Not to abide by the awards I would say could well ... cost council more money."

Local government wage agreements are negotiated across almost all NSW councils on a three-year basis, with the next agreement due in a few weeks.