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Kiama Council shifts blame to union amid financial crisis

The Bugle App

Donna Portland

29 June 2024, 12:25 AM

Kiama Council shifts blame to union amid financial crisis

Kiama Council has initiated a process of blame shifting as they face an impending financial loss from selling their aged care services significantly below market value, according to the United Services Union (USU) which represents workers at the council.


In an extraordinary meeting on June 27, the council presented a report that included a statement blaming the union and political opponents for the reputational damage affecting the sale of their aged care services.


This move appears to be an attempt to deflect responsibility for the anticipated significant loss in selling off valuable ratepayer services, as predicted by various concerned citizens that have contacted The Bugle in the past couple of months.



Graeme Kelly, General Secretary of the USU, maintains, "This is an attempt to blame others for their own incompetence. Kiama Council has deliberately mismanaged their aged care services, engaging in economic vandalism that shortchanges their community and involves selling off the largest public aged care provider in Southern NSW."


"The fact that the Mayor, Labor Councillors, and Matt Brown opposed an amendment removing references to community opposition to the sale demonstrates a complete abandonment of the values they claim to uphold.


"Particularly, the sitting Labor Councillors should be ashamed and look for the real culprits within the council's management.



"The union believes that with this privatisation, the community is at serious risk of service degradation, especially if it is bought by a for-profit provider, which were deemed the worst type of provider in the aged care royal commission.


"This council's action at their extraordinary meeting was disgraceful and demonstrates to the entire Kiama community that their primary interest is their personal reputation, not the welfare of their community," said Mr Kelly.


In response, Cr. Matt Brown has said, "There was legitimate concern from the USU for the sale of Blue Haven Bonaira, especially about staff pay and conditions. I respected those concerns and made representations to Council staff and my fellow Councillors for us to take this into consideration. We did. We moved to make a condition of the sale to include the preservation of all staff pay and conditions by the new owners for five years! I see this as a win for the work the union did to protect its members and am proud that I also fought for this."



Labor Councillor Stuart Larkins maintains, “The most recent statement by the USU is incorrect. The amendment moved by Kiama Greens Councillor Kathy Rice to remove references to some opposition to the sale of Blue Haven Bonaira was ruled out of order by the Mayor based on the code of meeting practice. This was because the amendment had not been circulated to councillors prior to the meeting.” 


As a result of the procedural ruling by the Mayor - the amendment was not put to a vote.


“I do find it very bizarre, that we have had two years of campaigning by some to stop any action being taken by councillors to address the financial situation at Council, and that when it is referenced in a formal document of Council acknowledging that campaign - that some want to see it removed,” said Cr. Larkins.


“You only have to look online or on social media to see a consistent pattern of misinformation and, I think disinformation, that has been spread in regards to this significant issue.” 


“The Health Services Union (HSU) represents the bulk of Blue Haven employees and have engaged respectfully and constructively with councillors and council executive. We are very happy to have advocated for the staff rights and awards will be transitioned over a five year period following the sale of Blue Haven Bonaira,” said Cr. Larkins.