Thousands of NAB staff may strike after ‘meagre’ pay offer of 5%

Employees at one major Australian organisation may strike for the first time in 20 years over a “meagre” pay offer as the CEO’s pay rose by millions.

Employees may strike over a “meagre” pay offer from the National Australia Bank, according to the union, with claims it does not address the rising cost of living and the organisation is plagued by an “understaffing crisis”.

It would be the first time in 20 years the bank, which employs 32,000 people, could face strike action from its workers.

The bank has offered employees earning less than $100,000 annually a 5 per cent rise in the first year, and a 4 per cent rise in the second year as part of new enterprise agreement for staff.

For those earning more than $100,000, a 4.5 per cent increase has been offered followed by 3.5 per cent.

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The union claims 60 per cent of staff won’t be entitled to automatic pay increases. Picture: Getty Images

Finance Sector Union (FSU) national secretary Julia Angrisano said wages were falling behind the cost of living and the bank worker’s pay packets were going backwards.

She added the “meagre” pay offer contrasts to NAB chief executive Ross McEwan’s pay rise which went up 113 per cent in 2021 from $2.3 million to $5.3 million.

“CEO salaries are out of control and McEwan and his executives are happy to take big jumps in pay and bonuses while telling workers they need to take a cut in real wages,” she said.

“It is clear that wages are not keeping up with the cost of living, leading to a decline in living standards for many workers.”

The union called out NAB CEO Ross McEwan’s pay packet. Picture: Supplied

Part of NAB’s proposal includes an annual review of more senior staff’s salaries but the union said it would mean about 60 per cent of the workforce would have no certainty of a pay increase.

“All our members need at least a 6 per cent pay rise as soon as possible and it is not good enough to subject most NAB workers to pay review meetings with executives,” Ms Angrisano said.

She added that the proposed 5 per cent pay rise does not keep pace with inflation, with federal Treasurer Jim Chalmers outlining in July that he was expecting inflation to hit a whopping 7.75 per cent by the December quarter of 2022.

NAB staff aren’t happy. Picture: NCA NewsWire / John Gass

Some members told the union that as a result of being excluded from automatic increases that they hadn’t had a pay rise in 10 years.

Others said the increase in cost of living was causing “significant stress”.

“As the cost of living goes up, the chances for my partner and I being able to afford a home go down, as everything is going up, just not our pay,” said one employee.

The company has also offered an extra week of paid leave each year for employees who have met their requirements for annual leave, rostered days off and long service leave within a financial year.

Julia Angrisano is national secretary of the Finance Sector Union. Picture: Hollie Adams/The Australian

But the union claimed that the current offer attempted to claw back of conditions like annual leave loading and rostered days off.

“NAB’s executives think their ‘business as usual’ model is good enough but our members are very disappointed that the bank refuses to acknowledge the overwork and understaffing crisis or the need for change,” said Ms Angrisano.

“If the NAB won’t act then our members will take action. They have indicated they are going back into the workplace to press the case for industrial action with their colleagues unless NAB improves its offer.”

Industrial action could include strikes, stop work meetings and overtime bans from thousands of FSU members.

NAB workers haven’t striked since 2001. Picture: NCA NewsWire / Kelly Barnes

NAB, along with the other major banks, have passed on the super-sized interest rate rises to its mortgage customers.

However, the big jumps haven’t been offered to savings customers with on average an 0.55 per cent rise compared to the 1.75 per cent increase in interest rates with the move expected to help boost bank’s overall profits, RateCity found.

NAB’s executive of people and culture Susan Ferrier said a lot had changed in the workplace since the bank’s last agreement in 2016.

“We are looking to modernise and put our trusted colleagues first by fairly rewarding them, supporting their flexibility, lifestyle and wellbeing, and introducing an extra week of leave and improved parenting leave entitlements,” she said.

Originally published as Thousands of NAB staff may strike after ‘meagre’ pay offer of 5%