The good news emanating from NAB’s headquarters in Melbourne is that the bank has agreed on terms with the Finance Sector Union for a new enterprise agreement.
However, there is bad news as well.
The parties are in dispute again – this time over whether to allow staff to vote on the proposed deal during the current health crisis.
According to a union memo sent to NAB workers, voting on the deal was due to begin last week but the ballot process was aborted by the bank on the grounds that all employees should be focused on meeting the needs of customers during the pandemic.
The company wrote to the union in late March to explain that it was not in a position to facilitate an all-staff ballot planned for this month, but last week suspended the ballot indefinitely.
The controversial decision has stalled the approval process for the new agreement, which was expected to be certified next month.
This has riled union members who are now organising online workplace meetings for next week to discuss their response to the bank’s decision.
Under the proposed agreement negotiated last month most salaried NAB staff will receive a 3 per cent pay rise this year, which is to be backdated to the start of January.
Staff will also receive another 3 per cent pay increase in 2021.
While the bank has notified the union that the pay rises will take effect in May, the FSU wants the agreement certified to give staff certainty to other new entitlements.
“We believe in these times of uncertainty it is more important than ever for staff to have secure conditions of employment,” the FSU told members in an update.
“NAB have provided the FSU with a letter confirming they will pass on all of the negotiated positions over the coming two years, however without them being embedded in a new certified Agreement they are free to change their mind at any time and legally there will be no recourse if this occurs.”
NAB’s new chief executive Ross McEwan signalled to investment analysts on Monday that the bank planned to reduce costs over the next two years, including the size of the company’s workforce.