Westpac announced today that it has reached an agreement in principle with the Financial Sector Union for a new enterprise agreement with approximately 30,000 employees in Australia. While the westpac enterprise agreement appears to leave the bank some discretion as to when employees should use their leave rights, the bank may potentially further damage its reputation by encouraging employees to take vacations in their backyards. Christine Parker, Executive Human Resources and Corporate Affairs at Westpac Group, said the new agreement was a major step forward in our staffing offering and would help cement Westpac`s position as Australia`s employer of choice. The agreement, which was supported by 90% of the bank`s staff, comes because the FSU is calling for a new industry-wide compensation framework, in which discretionary payment, variable payment and commissions are wrapped in the basic rate of pay for employees. Dent believes that when it is time for other large banks to renegotiate their enterprise agreements, employees, unions and bank customers are expected to offer these benefits. So it will be more of a standard than an exception, she says. The new wage agreement was stamped on Thursday by the Fair Labour Commission and offers employees salaries of up to $82,500 with an increase in inflation of 3.25 percent this year. The bank will exercise its discretion to distribute larger-than-those salary increases to employees paid between $82,501 and $106,500, the agreement says. A spokeswoman said the agreement was supported by 90% of employees because it “does the right balance and reflects the needs of our employees, customers and our company.” The FSU and westpac will consult again with workers, with the final agreement to be coordinated by eligible workers later this year, before they are submitted for approval by the Fair Work Commission. Nathan Rees, deputy secretary of the Financial Sector Union, said that “the end result is a fair deal.” “For the most part, this agreement is moving in the right direction,” he said. The new agreement, which has yet to be submitted to the Fair Work Commission, is supported by Westpac executives and 90 per cent of staff who participated in the FSU vote. The current contract expires on December 31.
Some 30,000 employees are expected to benefit from the new agreement. Some of the proposed agreements that are now subject to employee vote are: Westpac`s enterprise agreement was stamped this week. Credit: David Mariuz While Sorry Business and transition leave could attract the most attention, there is more attention on the new agreement that will benefit all staff. The new agreement will apply to most Westpac Group employees, including their regional brands St.George Bank, Bank of Melbourne and BankSA. Parker said that while these negotiations are often complex, Westpac and the FSU have brought a constructive approach to the negotiating table and reached an agreement in a timely manner. A new wage agreement at Westpac has triggered a shackle on union demands, which could put pressure on employees to prioritize sales, as some workers have discretion to raise wages under the deal. The proposed agreement is valid for a period of three years and provides workers with greater security under long-term conditions. “We have strict controls to ensure that discretion is applied appropriately by managers and as part of our policies,” the spokeswoman said.
. Get the skills and understanding to develop and implement HR policies that are relevant, clear and effective in your business, with the AHRI short course “Develop and implement HR policies.” The royal commission drew attention to the problematic nature of variable pay. . “It`s important that people take a break every year,” said a Westpac spokesperson. “The union secured wage increases for most workers beyond the consumer price index. In addition,