Major bank also offering extra leave
National Australia Bank is offering its employees an extra week off and pay hikes of up to 5% as part of a package it hopes will be agreed on with the Finance Sector Union.
NAB has never bypassed the FSU in striking a deal, according to The Australian Financial Review. However, it could follow ANZ’s lead and put the deal directly before its employees if talks with the union fall through.
NAB started negotiations on Monday. The bank has proposed a salary increase of 5% in the first year and 4.5% in the second for those making under $100,000 per year. Those making more than $100,000 in the bank’s lower banded positions have been offered 4% and 3.5%, AFR reported.
NAB also disclosed how much it would increase the pay of those not covered by the enterprise agreement in response to the FSU’s request for transparency. Employees in what the bank calls groups three to six, who are not covered by the FSU negotiations, would receive increases of 3% to 4.5% depending on their job grades, with lower-banded employees receiving a 4.5% bump and higher bands getting a 3% hike.
“We believe this is the right combination for colleagues and the future of the organisation,” NAB head of people and culture Susan Ferrier said in an email.
In addition to the pay bump, NAB said it would give employees who had already taken their four weeks’ annual leave an additional week of paid leave, AFR reported.
Read next: Westpac offers employees $1,000 bonus to approve wage proposal
“We have also put forward other proposals to simplify our EA and make it easier for colleagues to understand and for us to administer, and to ensure the way our business operates in the future is simple for everyone,” Ferrier said in the email. “We want an enterprise agreement that puts colleagues first by fairly rewarding you and supporting your lifestyle and wellbeing.”
If the majority of NAB employees support the deal, the bank could bypass talks with the FSU and put the proposal to a vote, as ANZ has done since 2015, AFR reported. However, NAB and the union have always successfully negotiated in the past, and the bank has not indicated that it would walk away from talks.
Westpac is still in talks with the FSU over its new enterprise agreement. It has offered its lowest-paid employees a 4% pay hike and a one-off $1,000 bonus.
Commonwealth Bank has refused talks with the union, saying it would prefer to negotiate directly with its employees, AFR reported.
