Some executives who earn more than AUD 110,000 a year and whose salaries are governed by the company agreement receive significantly less than headline increases. While the FSU and its members are agitated for increases of more than 3%, in line with the multi-year agreements negotiated earlier this year with Westpac and NAB, the pandemic has hampered the union`s bargaining power. Company negotiations are the process used to negotiate company agreements with public sector employees and workers` organizations. Enterprise agreements aim to facilitate flexibility, efficiency and productivity in the public sector. Company agreements can cover a number of areas such as rates of pay, flexibility of working arrangements, paid maternity and adoption leave, as well as professional conditions, as well as consultation requirements for changes and reforms. “In some sectors such as construction, professional services and other service sectors, a small number of significant wage declines contributed to a decline in the sector as a whole.” Insurance Australia Group this week presented a new three-year salary offer that would only increase the overall “wage reserve” by 1 per cent this year and 2021, with an increase of 1.5 per cent in 2022. “Members found that the 1.8 percent increase in the wage price index in the year through June was the lowest growth rate in the history of the series,” the protocol said. “If you`re the government or the reserve bank, the reality is that you don`t let households spend again with wage growth that is on average `a point a little`. Victorian Public Service Enterprise Agreement 2020 (PDF, 6.33 MB) Independent economist Stephen Koukoulas believes that the recovery will likely be limited by the wage agreements currently being negotiated, given that they set anemic wage increases for several years. The severe crackdown on wage growth in the financial services sector reflects an upward trend in Australia, which worried the Reserve Bank long before the pandemic broke out in March. There are signs that large financial institutions will try to negotiate toll deals even lower than CBA`s offer. “The real wage cut is really hampering the economic recovery,” he said.

Staff receive a mobility payment to be paid as an annual fee to honour their continued commitment to these new modes of operation. Leading economists acknowledge that the contraction in real income is likely to hamper Australia`s economic recovery, as it could lead to further declines in household spending. “When financial institutions are faced with a choice between wage increases or dividends, banks should prioritize the former, as they directly stimulate the consumption needed for recovery.” The Victorian Public Service Enterprise Agreement 2020 was formally approved by the Fair Work Commission on 2 October 2020 and put into operation on 9 October 2020. According to IAG`s proposal, not all employees would benefit from a nominal increase in revenue, as the company wants to link the salary increase to the benefit. This means that many IAG employees are facing a decline in their real income, as upgrading the wage pool over the next three years will not be enough to get nominal salary increases in line with inflation for all employees. Given that the Reserve Bank expects price inflation to be around 1.5% over the next 12 months, the increase proposed by CBA would only maintain the real incomes of 30,000 Australian employees. “Household spending fell by more than 12 percent in the June quarter – without real growth in household income, consumption is kept under pressure.