Commonwealth Bank and ACTU Disagree on Job Contracts

December 1 2006 - As it prepared for a national protest against the Howard Government's IR laws, ACTU said that Commonwealth Bank employees lack genuine choice when asked to sign a new standard AWA individual contract. The union has called for staff to be balloted on their preference for individual job contracts or a collective agreement.

The union states that among basic conditions of employment removed by the new contract are rostered days off, overtime pay, shift allowances, weekend and public holiday penalty rates and annual leave loading; allowances for higher duties, relieving other staff, meals, travel and use of home telephones; relocation and removal expenses for staff required to transfer between branches; guarantee of paid parental leave and redundancy pay for bank employees.

Lasting for five years, the union further claims that the AWA individual contract does not guarantee any pay increases; thus workers' pay could fail to keep up with increases in the cost of living.

Greg Combet, ACTU secretary said:

"The Commonwealth Bank is one of Australia's biggest and most profitable companies. It made nearly AS$4 billion profit last year and employs 35 000 staff around Australia. It is unnecessary and unacceptable that hard working employees in bank branches as well as in call centres and back-office operations are facing major cuts to their basic job conditions. But that is exactly what big companies are being encouraged to do under the Federal Government's IR laws.

"These IR laws give all the power to large businesses at the expense of working families. Bank workers with family responsibilities are particularly worried by the loss of control over their rostered hours of work and the fact that under the AWA individual contract paid maternity leave is discretionary. The Commonwealth Bank's AWA individual contract also enables bosses to schedule work at any location at any time over a seven day week and this measure alone will make it hard for many bank employees who are women working part time.

This is an appalling job contract that takes away workers' control over their roster and undermines their pay and conditions. This is another example of how badly the Howard Government's IR laws are hurting working Australians. Everyone who is concerned for their job security, their pay, conditions and lifestyle should come to tomorrow's national protest."

The Commonwealth Bank issed a media release, strongly refuting what it described as the 'misleading allegations made by the ACTU'. The bank pointed to good relations with its employees as measured by strong internal and external staff engagement scores.

The Commonwealth Bank said that it has an Australian Workplace Agreement in place that gives the bank the 'flexibility it needs to meet customer needs in today's changing environment'. It instanced 24/7 call centres.

According to the bank, staff presently employed under the Commonwealth Bank's Enterprise Bargaining Agreement can remain under the terms of that agreement. It confirms that they will continue to receive:

• overtime
• shift allowance
• public holiday pay
• rest breaks
• RDOs, and
• other basic entitlements

The Commonwealth Bank stated that

"... no staff member employed under the EBA is being forced to move to an Australian Workplace Agreement. The Commonwealth Bank clearly supports fair working practices, including the right to choose.

"Commonwealth Bank staff covered under the EBA have continued to receive salary increases, including a 4% per annum increase from 1 July 2006.

"The terms and conditions, including remuneration, offered in the AWAs reflect the full range of benefits to employees.

"The Bank, as it always has, will continue to talk to staff around matters such as their individual working hours. It has to work for both parties and we are committed to that approach.