It was proposed by councillor Paul Funnell that staff forgo their annual salary increase for 12 months to reduce the council's $4.4 million budget blow out as a result of the pandemic.

Speaking to councillors at Monday night's meeting, Cr Funnell said this matter was "uncomfortable and distressing" for those that would be affected. However it was a "sensible and responsible" action for the council to take in light of the current and future budget impacts that lie ahead.

"We are facing unprecedented and unexpected losses into the millions of dollars and we need to find ways to plug the hole and work through the situation," he said.

Cr Funnell suggested that one year without a pay rise could lead to a saving of about $2 million without job losses.

Cr Dan Hayes said it would "take significant funds to fight a lost cause" as the these conditions were set by the award, which was binding for both employees and employers.

"I am not keen to spend ratepayers' money, to be given to lawyers, for an unwinnable court battle," he said.

Cr Rod Kendall said he did not necessarily disagree with Cr Funnell's intent, however he had an issue with the way it was raised, perceiving it as "confrontational" to the council's employees.

"The shame is that staff would have perceived this as an edict from above ... rather than someone who wants to sit down and negotiate with them," he said.

Cr Tim Koschel said this was very a difficult matter to discuss because they were talking about people's livelihoods. However, he said in the private sector world many employees will not get a wage increase as businesses look to improve their bottom line.

Crs Funnell, Koschel and Yvonne Braid voted for the motion, whereas Crs Kendall, Hayes, Vanessa Keenan, Greg Conkey, Dallas Tout and Kerry Pascoe voted against.