Insignia Financial has proposed axing long-standing redundancy pay arrangements for workers and reducing it by a massive 58 weeks, tabled as part of recent negotiations with the Finance Sector Union (FSU) for a new Enterprise Agreement.
FSU National Secretary Julia Angrisano condemned the move and said it follows a period of significant change and aggressive cost-cutting measures at the company.
“Under Insignia’s proposal, long-standing arrangements that provide for up to 94 weeks of redundancy pay would be slashed to 36 weeks after the first 12 months of the Agreement being in place,” Ms Angrisano said.
“This is a massive cut and would make it one of the lowest redundancy arrangements in the finance industry.
“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 has been in negotiations with Insignia for a new Enterprise Agreement for over four months, advocating for fair working conditions including guaranteed pay increases, improved leave entitlements and the right to work from home.
However, Insignia has so far blatantly rejected what workers are calling for in negotiations, particularly the need to maintain and enhance vital work from home arrangements which has proven beneficial to both workers and the company.
In addition, Insignia was recently fined $10.7 million for failures of risk and governance over MySuper products and confirmed it would add a massive $135 million (after tax) to its remediation bill for FY2024.
Ms 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 toward protecting work from home arrangements is counter-productive to what we hope to achieve through negotiations which is to foster a positive work environment.
“Earlier this year, thousands of Insignia workers signed an open letter to CEO Scott Hartley calling on him to reconsider Insignia’s position on working from home and engage in meaningful negotiations with the FSU to address critical issues like redundancy pay. Unfortunately this has fallen on deaf ears and Mr Hartley has chosen to ignore workers’ concerns.
“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.”
Quotes from FSU members at Insignia:
“I am very concerned about the potential loss of redundancy entitlements – which is inconsistent with IFL’s values of ‘doing what’s right, not what’s easy’.”
“I am concerned however about the watering down of redundancy provisions. Insignia has long-term, very experienced people with deep knowledge of this business. That should be respected.”
“It is disappointing and disheartening that my employer cannot see my worth and there is no more employer loyalty.”
Media contact: Stephanie Lim – 0434 160 521
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