NAB employees vote down bank’s proposed pay deal

National Australia Bank employees have knocked back the company’s pay proposal that included wage rises of between 3.5 and 5 per cent, pushing the banking giant back towards the negotiating table.

Amid high inflation and fierce competition for labour, NAB had bypassed the Finance Sector Union (FSU) and put its offer for a new enterprise agreement covering 29,000 staff directly to employees for a vote, despite the union’s opposition.

But 53.9 per cent of staff included in the ballot voted against the deal, while 46.1 per cent voted in favour.

Chief executive Ross McEwan said in an email to staff that the bank would now talk to staff about why the deal was rejected, and it would provide a further update before the end of the year. McEwan told staff the bank would “listen carefully and consider your feedback”.

“The outcome of the vote is disappointing, however I acknowledge and respect that a majority of colleagues that voted had a different view,” McEwan said.

“We will commence a process of talking with our colleagues to hear from you further and better understand why we have this outcome. In the meantime, the current enterprise agreement 2016 will continue to apply.”

The rejected deal had offered staff earning up to $100,000 a 5 per cent pay rise in the first year, and a 4.5 per cent increase in the second year. A group of staff earning more than $100,000 were offered a 4 per cent increase in the first year and a 3.5 per cent increase in the second year, while more senior managerial staff covered by the agreement were offered a pool of funds that would be used for pay increases.

The FSU has been pushing for a 6 per cent pay rise and has urged staff to vote against the proposal.

FSU national secretary Julia Angrisano criticised the pay increases NAB had offered, and also reiterated the union’s concern about staff working excessive hours.