In a statement on Wednesday, the Financial Sector Union (FSU) said Insignia Financial had “blatantly rejected” what workers had asked for during negotiations, opting instead to propose a “massive” reduction in long-standing severance pay agreements.
The current collective agreement provides for up to 94 weeks of severance pay, which according to Julia Angrisano, national secretary of the FSU, will be reduced to 36 weeks after the first 12 months of the new agreement. However, this is an increase compared to the original proposal of six months of severance pay.
“This is a massive cut and would make it one of the lowest severance agreements in the financial industry,” Angrisano said.
“These agreements will disproportionately affect older, long-serving staff who have dedicated years of service to the company, undermining their job security and financial stability. This is a despicable move and a poor way to thank some of its most loyal employees.
“This also comes at a time when staff are already facing uncertainties due to the company’s transformation initiatives and aggressive cost-cutting measures.”
The FSU said the negotiations, which have been underway since February 26, also include guaranteed pay increases, improved leave entitlements and the right to work from home.
According to the union, Insignia has “outright rejected” calls from workers to “maintain and improve the vital conditions of working from home, which have proven to be beneficial for both workers and the company.”
On Monday, APRA fined OnePath Custodians, a trustee owned by Insignia, $10.7 million in relation to alleged breaches by the OPC of the SIS Act for failing to invest members’ pre-determined superannuation contributions into MySuper products.
In its quarterly update to the ASX on Monday, Insignia noted that $23 million of the additional $135 million it has set aside for remediation provisions relates to the OPC enforceable undertaking.
Angrisano said this is “yet another example of how workers pay the price for the company’s mistakes.”
“That money is not reaching the workers in the form of well-deserved pay increases due to the mistakes of senior management. This clearly shows that Insignia values profits over the well-being and morale of its workforce,” he said.
“Their indifference to protecting working from home conditions is counterproductive to what we hope to achieve through negotiations, which is to foster a positive work environment.”
In a statement to ifa, a spokesperson for Insignia Financial said: “Insignia Financial is currently in discussions with the Financial Sector Union (FSU) to develop a single enterprise agreement. This will replace our existing agreements that were inherited through multiple acquisitions.
“We continue to work through the negotiation process and are pleased with the progress we have made to date. We remain committed to continuing to negotiate in good faith with the FSU to achieve a unified set of terms and conditions that meet the needs of our people and our business.”
Earlier in the bargaining process, an open letter signed by “thousands of Insignia workers” urged newly appointed Insignia CEO Scott Hartley to “engage in meaningful negotiations” with the FSU.
“Unfortunately, this has fallen on deaf ears and Mr. Hartley has chosen to ignore the workers’ concerns,” Angrisano said.
We believe that the well-being of workers should not be compromised in the name of cost reduction and it is imperative that the company fulfils its responsibilities, particularly to those who have demonstrated long-term commitment and loyalty.
“FSU will continue to advocate for fair and equitable treatment for our members and will not relent until these unfair proposals are withdrawn.”
