The Finance Sector Union has scored industry-leading pay rises and recognition of work from home arrangements under a new enterprise deal struck with the National Australia Bank. The deal contains new features that could be potentially significant for the banking sector, including improved parental leave entitlements, wider staff eligibility for fixed pay rises and an internal dispute resolution process for staff wanting to work from home. Under the agreement, which is likely to be put a ballot of 29,000 NAB employees in late July or August, staff earning up to A$100,000 will receive pay rises of 5 per cent in 2024, 4 per cent in 2025 and 3.5 per cent in 2026. NAB staff in this income group were granted pay increases of 5 per cent for 2023 in January. An important feature of the agreement is that around 80 per cent of all NAB staff will be guaranteed increases to their fixed pay. That represents a significant departure from previous NAB agreements, which guaranteed fixed pay increases to a much lower percentage of staff. Under the new agreement, NAB staff earning between $100,000 and $110,300 are in line to receive a 5 per cent pay increase in 2024, while those in the next income band up to $140,000 are guaranteed a 3.5 per cent rise. The pay rises across the pay grades are mostly higher than those offered by the bank last year when it tried to bypass the union and the enterprise bargaining process. A direct staff ballot initiated by the bank last November failed to secure majority support for a two year-deal that would have given employees earning less than $100,000 a year a pay rise of 4.5 per cent in 2024.  The NAB pay rises are significantly higher than those granted to Westpac staff last year.

Westpac employees earning up to $94,550 a year received a 4 per cent boost to their fixed pay for 2023. However, Westpac staff in the next income category - earning up to $118,000  - harvested only a 3.5 per cent increase to fixed pay. While NAB chief executive Ross McEwan has beaten a loud drum in the media in the last 18 months for his staff to return to work in offices, the bank has given ground to the FSU by recognising the need of some staff to continue working from home. The bank has agreed to establish procedures for considering applications from staff to work from home, which include access to an internal dispute resolution process. NAB is also continuing to elevate its reputation as a supportive employer of women. It has agreed to extend parental leave entitlements to up to 16 weeks from 12 weeks and has binned primary carer criteria that previously constrained eligibility. The agreement also contains new provisions that recognise the special work requirements of staff experiencing the health effects of menopause. FSU national secretary Julia Angrisano last night described the NAB deal as “an industry-leading enterprise agreement”. “Union members, acting collectively gave the NAB a clear message that they deserved better pay rises than the bank was prepared to pay them and