10 August 2012 6:47am

Commonwealth Bank has abandoned negotiations with the Finance Sector Union and will adjust pay rates for most staff by 3.5 per cent.

Yesterday, the FSU confirmed the bank had advised that it will lift pay rates without any extension of its enterprise agreement. The bank and the FSU last reached agreement on a one-year extension of their enterprise agreement in October last year, which was then back-dated to the beginning of the financial year.

This year, the bank will pay any staff member deemed a "valued contributor" 3.5 per cent more. Those deemed as requiring "development"...