The ongoing sale of Blue Haven Bonaira to Hall and Prior Aged Care has escalated into a legal battle, with all three major industry unions, United Services Union (USU), Health Services Union (HSU), and the Nurses and Midwives' Association, filing proceedings in the New South Wales Industrial Relations Commission. The case revolves around the transition of employment contracts and redundancy entitlements for Blue Haven staff.

At the heart of the dispute is a significant legal gap. Under current industrial laws, there is no provision for transitioning employment contracts from a local government employer, such as Kiama Council, to a private sector employer within the national system. As a result, existing contracts are considered redundant once the sale is completed, jeopardising employee entitlements such as long service leave.

Hall and Prior has issued letters of offer to Blue Haven staff, asking them to resign from their current positions to accept new contracts with the private provider. While the new contracts include a salary maintenance provision, they exclude other critical conditions, such as service continuity and long-term entitlements.

“The new contracts do not carry over accrued entitlements or recognise years of service,” said Stuart Geddes, an Industrial Officer with the USU. “This means that staff who are just short of reaching long service leave thresholds, for example, would lose out entirely.”

The unions argue that these changes amount to an effective loss of redundancy entitlements, a key protection under the existing industrial framework. Kiama Council had planned to apply to the Industrial Relations Commission to strike out redundancy obligations by arguing that the new contracts offered “sufficient benefit.” However, the unions have pre-empted this by filing their own application, asserting that the new offers fall short of maintaining parity with existing terms of employment.

“We have tried to negotiate with the Council in good faith, but they have refused to provide clear responses,” Geddes explained. “Our position is that staff who are being placed on lesser contracts should be entitled to redundancy payments.”

The unions’ concerns extend beyond wages. The proposed changes would create a break in service, affecting long service leave and other accrued benefits. Under the Local Government Award, long service leave matures after five years, meaning staff who have worked for four or more years risk losing their accrued benefits entirely.

“This is not just about legal compliance; it is about fairness,” Geddes emphasised. “Staff who have dedicated years to Blue Haven should not have their service wiped out.”

The matter is scheduled to be heard at the New South Wales Industrial Relations Commission in Parramatta on Tuesday at midday. The unions are seeking to ensure that all staff either retain their full entitlements or receive fair redundancy payments if they choose not to transition to the new employer.

Kiama Council, already under financial strain, faces scrutiny for its handling of the Blue Haven sale and its ongoing legal battles.

The case highlights the complexities and challenges of transitioning staff from local government employment to private providers, raising questions about fairness and the protection of workers' rights.