Time to Decide. Frequently asked questions. Proposed Suncorp Group Enterprise Agreement What you should consider before you vote.

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1 15 November 2010 Time to Decide Authorised by FSU National Secretary Leon Carter Finance Sector Union of Australia Phone: (Monday to Friday, 8am - 6pm EST) Fax: FSU Website: fsuinfo@fsunion.org.au The FSU, Independent Bargaining Representatives and Suncorp have been in negotiations since early this year for a new Enterprise Agreement. The proposed Agreement is to replace all six current Agreements. Late last month Suncorp unilaterally concluded negotiations and stated they would take the proposal to ballot. The current proposal still falls well short in some key areas. Although it includes some improvements like: an independent umpire if there is a dispute; better protections in the case of redundancies; and a clause that states targets will be fair and transparent, there are important concerns remaining. In particular the proposal falls below industry standard in the following areas: Guaranteed pay increases are low and many employees may get no increase resulting in real wages declining The term of the Agreement at 4 years is too long No penalty for work on a Saturday between 8am 12 noon when the industry standard is 50% No voluntarism for working on weekends No transparency in the classification structure. Suncorp have also recently announced that once the proposed Agreement is approved the organisation will move to a single employing entity (NOHC). Employees will then be on a standardised set of conditions. For some heritage employees this will result in a loss of some current conditions. What you should consider before you vote. Frequently asked questions. What happens if the proposed Group wide Agreement does not get a yes vote? If a majority of employees do not vote yes Suncorp say they will need to reconsider its position. What the Group is not saying is that this would very likely lead to a better offer in relation to pay and conditions. For employees of AAMI, Promina, Promina Financial, Vero and AAI your current Agreements will continue to apply until they reach their nominal expiry or a majority of employees vote to accept a new agreement. For Suncorp employees your current Agreement although it has reached its nominal expiry date would continue to apply. Why is it essential that you vote? You will not get another say on your conditions for four years so it s essential to be part of the decision making process NOW. For the proposed Agreement to be accepted 50% + 1 of those who vote must vote in favour of the proposal. Make your vote count. Why did the FSU lodge an application with Fair Work Australia (FWA)? The FSU believes that Suncorp by unilaterally terminating negotiations has not acted in good faith. FSU requested FWA s assistance to get Suncorp to negotiate on employees key outstanding concerns, including pay. Page 1 of 7

2 What to consider before you vote. Base Pay Employees. Minimum A1 $34,600 to Minimum A4 $43, Will your pay go backwards during the Agreement? 2. Penalty Rates What are you losing out on? 3. Overtime will you be impacted? FSU proposal: 4% p.a guaranteed increase for all employees; Suncorp proposal: a) Pay increases on commencement of the Agreement = 2% or move to the compliance minimum, the very lowest that under law Suncorp can pay. b) Guaranteed pay increases are only 2% which won t keep pace even with cost of living increases. c) Guaranteed merit pool distribution is at the total discretion of the Group. Saturday penalties meet the Award minimum of double time after midday but at 0% between 8am noon they are well under industry standard of 50%. Suncorp employees will lose their current Saturday morning penalty of 30%. Overtime notice is only two hours. This could be an issue if an employee was asked to work O/T with an early morning start. Page 2 of 7

3 Fixed Salary Employees Minimum $46,500 includes Super 1. Employees in pay band 1-3 3% pool of salary pay band 1-3 only. Any increase to an individual base pay is completely at the discretion of their leader. 2. Employees in pay band 4 + Employees pay band 4+ NO GUARANTEES. Any increase completely at the Groups discretion. 3. Rostered employees Loading of 25% on the compliance minimum. This is the minimum under the Award that the Group can pay. The proposal will result in those working on weekends and nights receiving the same pay as their colleagues who only work during the day. Despite commitments provided at the table, some TR employees in AAMI and AAI may be worse off. Page 3 of 7

4 All Employees 1. Length of time you will be locked into this Agreement Suncorp proposal: 4 year Agreement. This is just too long when the new classification system lacks certainty and transparency. Also the guaranteed pay increases are too low, or for many employees non- existent. FSU proposal: 2 year Agreement. 2. Superannuation AAMI and AAI employees stand to lose their higher super contributions Includes protections if SG increased 3. Personal/ Carers Leave has Suncorp backtracked? AAMI and AAI employees will lose their 14 days entitlement under the current agreement, although the proposal provides for a one off accrual. During negotiations Suncorp agreed that Flexible leave (see Flexible leave notes) could also be used as Personal carers leave if an individual s annual balance was exhausted, this was to compensate AAMI and AAI employees who will lose their current 14 day p/a entitlement. They now say that it would only be available if an individuals entire balance of personal / carers leave Page 4 of 7

5 4. Compassionate Leave Original offer 3 days improved to 5 days 5. Flexible Leave Flexible leave can be used: with 5 days notice with approval from your leader: in an emergency without notice As personal / carers leave if you have exhausted your entire balance of personal/carer s (see personal / carers leave) It does not accrue 6. Paid Primary and Secondary Carers Leave Paid primary carers leave improved to 13 weeks (after 12 months service). Return to a comparable position. Suncorp will not pay superannuation for period of parental leave. Secondary carers Leave improved to 2 weeks for all employees. Some superior condition in AAMI agreement lost. Page 5 of 7

6 7. Long Service Leave Current availability to LSL pro-rata after 5 years lost from AAMI now 7 years. If you have 5 years accrued there may still be an limited opportunity for you to access this. Contact the FSU for more information. 8. Ordinary hours how are you impacted? 37.5 hours per week. AAMI employees currently will be moved to 37.5 hours per week and will have rate of pay increased to compensate for additional hours. Scope of ordinary hours 7am -7pm Monday to Friday 8am -12 noon Non-rostered employees can only be required to work Saturday morning if have regularly worked Saturday mornings. Suncorp have refused to exclude AAMI employees who currently work one Saturday a month as part of ordinary hours. 9. Rostered employees Monday Sunday. Suncorp could roster an employee to work outside ordinary hours and this employee could become a rostered employee and then be required to work Saturdays and Sundays as this definition currently stands. Page 6 of 7

7 10. Redundancy Improved definition of a comparable position and 4 weeks per year severance payment after 10 years. No additional payment for employees over 45. Maximum term employees excluded from this provision. 11. Dispute resolution Includes an independent umpire Page 7 of 7