IAG changes EA position – proposes pay freeze

This week FSU negotiators met with IAG to discuss your Enterprise Agreement (EA).

IAG has substantially altered their bargaining position.

The new position includes a proposal to freeze your pay for at least 2 years.

Despite your continued efforts post the horrific 2019-20 bushfire season and the other natural disasters that we’ve experienced in 2020 your hard work is not going to be rewarded with an industry leading EA. Instead you’ll be left with an EA that languishes at the bottom when it compares with other agreements in the industry.


IAG’s previous EA proposal
IAG’s current proposal
Wages quantum   
2% Will not be included in the EA
2021 2% Pay freeze
2022 2% Pay freeze
2023 Not considered as agreement would expire in mid 2023 Unclear but whatever is decided will be subject to meeting individual “Minimum Performance Increase” hurdles
Wage system Replace “Minimum Performance Increase” (MPI) with an across the board pay increase Retain MPI system for any increases
Short term Incentives (STIs) Remove from agreement as replaced with across the board pay increases Remove the STI completely
Superannuation on unpaid parental leave 13% superannuation paid on the unpaid period of parental leave (without a cash out option) No additional superannuation
Parental leave Broaden eligibility so that both parents can access paid parental leave. This would mean that there is no longer a “secondary carer” – both parents can access this leave Retain distinction between primary and secondary carers. Secondary carers can still access 3 weeks paid secondary carer’s leave.
Future of work Provision of a pathway for employees to transition to new jobs with a 3 month trial period. Available to those in the redeployment pool OR those who want to upskill IAG is now proposing to remove this provision from the enforceable EA and implement as policy only.
Gender affirmation leave Paid leave to support employees who are going through gender transition Unchanged – consideration to keeping in policy
Natural disaster leave Amend current “personal and emergency leave” and “Volunteer leave” provisions to include natural disaster leave Unchanged
Family and Domestic Violence leave 10 days paid leave

Additional leave available on case by case basis

Provide Supportive return to work program

NAIDOC leave 1 day paid leave for indigenous identifying employees to attend NAIDOC week events Unchanged


Today during negotiations FSU proposed that IAG include in the EA measures to guarantee job security – this was rejected.

FSU also proposed the inclusion of “work from home” provisions in the EA to guarantee you certainty of financial support for the increased cost of working from home. This was also rejected.

FSU is disappointed that the cost cutting measures IAG wants to implement in your EA will have a disproportionate impact on Women. We know that women have disproportionately withdrawn superannuation during this period and that they already retire with 47% less superannuation than men, we also know that the vast majority of women take on the caring roles – removing the 2 proposals that would have made a difference reinforces the disproportionate impact on women in the workforce.

Just this week Suncorp announced that they will increase the wages of their lowest paid workers by 1.5% this year and will provide a performance pool on top.

Would you accept a new EA on these terms?

Would your colleagues?

Let us know here.


In Unity,
Nathan Rees,
National Assistant Secretary