During Enterprise Bargaining negotiations today, BUPA agreed to ditch their performance pay model, where all pay increases were contingent on performance, and instead have adopted guaranteed increases for all workers, with access to a performance pay pool for high performers.
This move, alongside a commitment to provide up to 20 days paid domestic and family violence leave for workers impacted by family violence, brings BUPA to the front of pack when it comes to industry-leading entitlements for insurance workers.
Workers covered by the BUPA Enterprise Agreement will enjoy guaranteed pay increases of 2% in the first year and 2.25% in subsequent years. High performers have not been left behind, as there will be an additional 1% in a bonus pool available to reward exceptional performance.
This move will bring BUPA into line with IAG, who have also recently abolished a reliance on performance pay, and puts pressure on other insurers to move away from pay systems that are based on performance.
This turnaround by BUPA is on the back of member feedback and an acknowledgement that performance pay is not an appropriate system to rely on during an economic downturn or after the recommendations of the Royal Commission.
FSU will now be consulting with BUPA members about the EA offer – stay tuned for details about when and how the consultation will take place.
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