Macquarie Bank pushes to scrap overtime and other benefits for $85k workers

A major bank has made moves to exclude paying overtime and penalty rates and even targeted public holiday entitlements if staff receive a certain salary.

Macquarie Group is pushing for its workers that earn more than $85,000 a year to be excluded from being paid overtime or to receive public holiday entitlements.

The company, through its bank subsidiary, has applied to the Fair Work Commission to change its banking award to have senior staff excluded from certain entitlements if they are paid at least 50 per cent more than the minimum rate.

The move could affect a number of roles within the company including analysts, accountants, relationship managers, lending specialists, financial planners and specialised roles such as advisers.

Macquarie has more than 8000 employees covered by the award and wants to see workers paid between $84,708 and $94,879 exempt from rules regarding meal breaks, rostered days off, overtime, penalty rates, annual leave loading or public holiday entitlements.

Stream more finance news live & on demand with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 >

The Macquarie Group employs 8000 people in Australia. Picture: Ian Waldie/Bloomberg

But Julia Angrisano, national secretary at the Finance Sector Union (FSU), accused Macquarie of attempting to remove “safety nets” for staff and said it would fight the application.

“Macquarie Bank is looking for another way to rip money from its workers. This application by Macquarie Bank seeks to overturn the FSU’s successful 2009 application to have the exemption rate deleted from the award,” he said.

“The Australian Industrial Relations Commission saw fit then to insert an annualised salary clause to protect workers and we see no reason to vary that now.

“There is no justification for removing the safeguards of annualised salary protections and the safety net of award provisions for workers not employed under an Enterprise Agreement.

“Macquarie Bank has all the necessary flexibility under the current arrangements.”

Julia Angrisano is national secretary of the Finance Sector Union which is the union for bank employees. Picture: Hollie Adams/The Australian

But Macquarie criticised the award as “inhibit[ing] the flexible working practices that have become increasingly prevalent since the Covid-19 pandemic”, particularly record-keeping requirements for salaried workers which include start, finish and break times.

“In circumstances where an employee’s earnings are substantially higher than the minimum rates of pay under the banking and finance and insurance award, curtailment of flexible working is not consistent with the modern awards objective,” the bank said.

Macquarie was hit by an alleged $15 million underpayment claim two years ago. Picture: Getty Images

The annualised salary rules mean employers have to keep records of the hours staff do to ensure working extra hours or on weekends does not push their pay below the award rate, as working nights also attracts penalty rates.

In 2020, Macquarie was hit by an alleged $15 million underpayment claim from almost 100 staff, including pay brokers and wealth advisers, who claimed they weren’t properly paid annual leave, minimum weekly wages, penalty rates and personal leave.

Last year, a Federal Court found Macquarie underpaid 38 wealth advisers $1.3 million by not paying them sick leave, annual leave, 17.5 per cent leave loading or public holiday leave, but the decision has been appealed.