A major WA council has announced it will back pay $2 million to staff. 

The City of Kalgoorlie-Boulder is paying workers whose wages and loyalty payments were incorrectly withheld over a period of six years.

The council claims all current and former staff since mid-2016 will receive the money owed by June 30 this year. 

It comes after the council’s previous chief executive John Walker decided to freeze pay and loyalty payments several years ago. 

Last year, Mr Walker was temporarily suspended amid allegations of workplace misconduct, before leaving with an undisclosed payout.

Mr Walker is now interim general manager at the Lismore City Council. 

Mayor John Bowler said the pay freezes were due to a “technicality”, but the Australian Services Union (ASU) says the council dragged its feet on rectifying the issue. 

“It certainly wasn't easy to get the city to agree that our interpretation was correct,” ASU WA Assistant Secretary Jill Hugo said. 

“They were very adamant that their interpretation of the wording of the clauses was accurate.”

She also said that the former chief executive was a central part of that process. 

“The interpretation of what was agreed upon was seen differently by the CEO and by the city, to what our members and our industrial staff interpreted things to be.”

The Fair Work Ombudsman has confirmed it will conduct inquiries into the repayment matter. 

The repayments were announced just days after a report into workplace culture City of Kalgoorlie-Boulder was made public, revealing claims of bullying, harassment and sexism.