Australia Post’s proposed pay change has been met with outrage from postal workers across the country as more members understand that under Post’s proposal you lose a week’s pay this year. The loss will be made up – but on termination on your employment.
Workers have held angry meetings in workplaces and voted to reject Post’s proposed pay changes.
The overwhelming view of members is that the benefit of variable payments such as penalties paid at same time as base pay is far outweighed by the downside that you miss a week’s pay.
The reaction of members to Post’s offer of a loan of $600 repaid over 3, 6 or 8 pay periods is ‘no way’. Post can make a permanent loan of a week’s pay, cancelled out on termination say members
Australia Post has put out an SIB titled,” Improving our payroll system”. But the loss of a week’s pay is not bought to attention in the Post SIBs. It is obscure. The reason is obvious.
The CWU national office was back in FWC on this matter on Thursday, 31 July 2014. We proposed a more efficient processing of pays that would pay employees what they are owed (base and penalties etc) up to 5 November (AP timeline) and then adjust pay practices to align penalty payments and base pay without shifting the pay day to the extent proposed by Post.
This would retain existing system where people paid up to when they have worked and enable penalties to be paid at the same real time.
The FWC issued a Recommendation that requires Australia Post to consider CWU proposal. (Click here to see Recommendation)
The union proposal would allow Post to achieve its stated objective of improving the pay system. But is Post more interested in the 2% savings ($80 million) in payroll costs for the financial year? If they avoid paying everyone a week’s pay then then the Post Balance Sheet will be artificially improved!
We anticipate further discussions with Australia Post. The matter is back in FWC on 7 August 2014.