Westpac has warned staff that if they fail to accept its current pay offer then it will scrap new benefits that have been proposed.
It comes after employees flagged potential strike action over a “meagre” pay offer from the National Australia Bank, according to the union, with claims it did not address the rising cost of living.
Finance Sector Union (FSU) national secretary Julia Angrisano argued earlier this month that the “meagre” pay rise of 4 per cent contrasted to NAB chief executive Ross McEwan’s salary, which went up 113 per cent in 2021 from $2.3 million to $5.3 million.
Now, the big four bank has revealed it will bypass the union and put its pay offer directly to employees.
In an email to staff on Tuesday, Westpac’s head of human resources, Christine Parker, said that after months of bargaining a deal had not been reached with the union, which had called for 6 per cent pay rise to tackle the skyrocketing cost of living.
The current pay offer to Westpac staff, includes a pay rise of 4 per cent in 2023 plus a $1000 bonus late this year, would be put to a vote of around 30,000 staff next month.
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Westpac’s offer for employees earning up to $94,446 in fixed salary includes a 4 per cent pay rise in 2023 and a one-off payment of $1000 late this year.
For those earning fixed pay above that amount but less than $118,057 annually, the bank is offering a 3.5 per cent pay increase in 2023 and a one-off payment of $1000.
Westpac’s offer also increases paid leave for “culture, lifestyle and wellbeing” from one to two days.
Ms Parker told staff in the email that it had looked for a “balanced, sustainable” decision for both staff and the business.
“We worked hard to reach agreement with the FSU, however we couldn’t get there and the FSU has decided not to support Westpac’s proposed EA. We respect the FSU’s role in the process and their right to have a different view,” she said.
“Something we’re proud of at Westpac is making balanced, sustainable decisions that consider the needs of our people and the business. We’ve worked hard to add to your current benefits and made sure there’s something new for everyone.”
She added if the bank could not get support for its offer from employees then “our current EA will stay in place without the new benefits proposed”.
The bank had lifted its pay offer since earlier this year when it proposed 3.5 per cent and 3.25 per cent.
The FSU has pushed for a 6 per cent pay rise for all Westpac staff and claimed the current offer represented a “real wage cut” compared to soaring inflation, which sat at 6.1 per cent in the June quarter and could hit 7.8 per cent by the end of the year.
“Wages are not keeping up with inflation and the increasing cost of living,” said Ms Angrisano.
“A recent report released by the FSU shows that our members are hurting – they can’t afford things as basic as medication, groceries and rent.
“While Westpac staff are reporting having to take second jobs, their bosses just don’t understand the pressures that workers are facing.”
Westpac had closed 200 branches across Australia since 2021, with the most recent cuts affecting 24 branches and 103 jobs.
Ms Angrisano said Westpac had refused to acknowledge the huge amount of additional unpaid hours employees were working at bank branches, call centres and other operational areas.
“The bank is ripping off employees, totally exploiting them and is expecting that staff work excessive hours in order to meet unrealistic workloads,” she said.
“Our members at Westpac say their workloads are out of control, with so much work it cannot be completed in a normal working day.”
Finances workers real wages had fallen to 2015 levels, according to Ms Angrisano said, but the email to staff argued pay rises for employees had increased by 19.75 per cent and 12.75 per cent from 2015 to 2021, depending on which salary tier they fell into,
This was surpassing the 10.9 per cent inflation over this period, according to Ms Parker.
The union was recommending that Westpac staff vote no to the new enterprise agreement (EA).
“Westpac has decided to put the proposed EA to a vote in October, despite three major issues remaining unresolved. Westpac workers deserve a pay increase that meets cost of living standards, addresses excessive workloads, and guarantees job security,” added Ms Angrisano.
“Workloads remain as a key outstanding issues for workers across the bank.”
Last year, the Commonwealth Bank made a similar move to the bypass the union and were successful in getting more than 60 per cent support for its agreement despite a strong union campaign for the “no” vote.
This year it opted not to negotiate with the FSU and instead will be applying a 4.25 per cent annual increase for the coming year.
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National Australia Bank is bank is offering a 5 per cent annual rise to those earning less than $100,000 in the first year and 4 per cent in the following.
For staff earning more than $100,000 the proposed increases are 4.5 per cent and 3.5 per cent respectively.
Dozens of branches from the major banks across Australia have closed this year causing job losses, with more than 550 sites shuttered since 2020.
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