DETAILS of a confidential dispute were revealed at a Hepburn Shire Council special meeting on Monday.
Chief executive officer Victor Szwed has accused Holcombe Ward Councillor Bill McClenaghan of bullying.
The council appointed independent investigator Mary-Ann West, who delivered a report on the allegations last Wednesday.
The report will be referred to Local Government Minister Richard Wynne and WorkSafe Victoria.
Mr Szwed, who lodged the complaint on behalf of the council, said he felt it was important to speak out against the alleged bullying.
"An independent investigator has found that my complaints of bullying against Cr Bill McClenaghan have been substantiated. It was vital that this most serious behaviour be brought to the surface and dealt with by council.
It is not just an isolated incident but a series of incidents and issues over a very long time," Mr Szwed said.
"As CEO I have a legal obligation to ensure that a safe workplace is provided for Council employees. In turn Council is responsible to ensure that a safe environment is provided to myself as their employee. It is quite clear from
the outcomes that this has not been the case.
"The stress to both myself and my family over the past several months has been immense and despite my steady demeanor in attempting to keep things operating at Council it has been very unsettling and has seriously impacted
my health and wellbeing," Mr Szwed said.
Cr McClenaghan refuted the allegations, saying Ms West's investigations into the complaint were incomplete.
"I categorically deny all allegations that I have bullied the chief executive officer in any way. I seek to clear my name and my council's reputation through a court of proper jurisdiction," Cr McClenaghan said.
"Council's internal investigation by a workplace consultant has found the claim by the CEO substantiated. This finding of an incomplete process, that has denied me natural justice, has now been published.
"Normally under British law anyone accused of an illegal act is presumed innocent until proven guilty. However under the Occupational Health and Safety Act, a person accused of workplace bullying is presumed guilty and must
prove that they are not guilty," Cr McClenaghan said.
"Workplace bullying is a cowardly and despicable act. It can have life changing effects, destroying careers and even leading some victims to suicide. It is immoral and illegal. I condemn it absolutely and have spoken out strongly
against it," he said.
As part of a recommendation reached, Cr McClenaghan will be offered counselling.
The meeting also recommended the entire council and senior management group be offered a series of team building workshops or a weekend event to assist in building an effective and committed team.
An e-mail policy for councillors and staff could also be introduced.
Mr Szwed called on ratepayers to respect the privacy of councillors and office staff involved in the investigation.
"Almost every week there have been letters and articles in the media substantially organised through an orchestrated campaign to destabilise both Council and myself," he said.
"It is important that council has now resolved to refer this report to WorkSafe and to the Minister for Local Government. In the interests of democracy, decency and the future of this Council I am sure that all people in the
community support following proper process. It has been most difficult for me to take the step against a Councillor but it is important that a safe work environment is provided to all," Mr Szwed said.