Insignia Financial has proposed slashing staff redundancy pay arrangements by 58 weeks, potentially making it one of the lowest in the industry.
In a statement on 24 July, the Finance Sector Union (FSU) said Insignia Financial “blatantly rejected” what workers have called for during negotiations, opting instead to propose a “massive” reduction in longstanding redundancy pay arrangements.
The current enterprise agreement provides for up to 94 weeks of redundancy pay, which FSU national secretary Julia Angrisano said would be cut to 36 weeks after the first 12 months of the new agreement being in place. This is, however, an increase from the originally proposed six-month grandfathering proposal.
“This is a massive cut and would make it one of the lowest redundancy arrangements in the finance industry,” Angrisano said.
“These arrangements will disproportionately impact older, long-term staff who have dedicated years of service to the company, undermining their job security and financial stability. It’s a despicable move and a poor way to thank some of your most loyal staff.
“This also comes at a time when staff are already navigating uncertainties due to the company’s transformation initiatives and aggressive cost-cutting measures.”
The FSU said the negotiations, which have been underway since 26 February, have also included guaranteed pay increases, improved leave entitlements, and the right to work from home.
According to the union, Insignia has “blatantly rejected” the workers’ calls to “maintain and enhance vital work from home arrangements, which has proven beneficial to both workers and the company”.
On 22 July, APRA fined Insignia-owned trustee OnePath Custodians (OPC) $10.7 million in regard to alleged breaches by OPC of the SIS Act for failing to invest members’ default superannuation contributions in MySuper products.
In its quarterly update to the ASX for the three months to 30 June, Insignia noted that $23 million of the additional $135 million it has put aside for remediation provisions relates to the OPC enforceable undertaking.
Angrisano said this was “yet another example of workers wearing the cost of the company’s mistakes”.
“That’s money that isn’t flowing to workers in the form of well-deserved pay increases because of the mistakes of senior management. It clearly shows Insignia values profits over the welfare and morale of its workforce,” she said.
“Their disregard towards protecting work from home arrangements is counterproductive to what we hope to achieve through negotiations, which is to foster a positive work environment.”
In a statement to Money Management, an Insignia Financial spokesperson said: “Insignia Financial is currently in negotiations with the Finance Sector Union to develop a single enterprise agreement. This will replace our existing agreements which 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 negotiation process, an open letter signed by “thousands of Insignia workers” called on recently appointed Insignia chief executive Scott Hartley to “engage in meaningful negotiations” with the FSU.
“Unfortunately, this has fallen on deaf ears and Mr Hartley has chosen to ignore workers’ concerns,” Angrisano said.
“We believe the wellbeing of workers should not be compromised in the name of cost-cutting and it’s imperative the company upholds its responsibilities particularly to those who have shown long-term commitment and loyalty.
“The FSU will continue to advocate for fair and equitable treatment of our members and will not relent until these unjust proposals are withdrawn.”
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