RAC S&MS Enterprise Agreement 2021:
NO pay guarantee from RAC

In recent Enterprise Agreement negotiations, our union brought an important provision to the bargaining – a pay model with guaranteed annual wage increases for all employees.

RAC rejected our proposal, and their response offers no guarantee of annual pay rises for most staff. RAC is now one of the last remaining insurance companies stuck with performance linked pay.

Have your say on RAC’s pay proposal
Register here for this important FSU zoom.

RAC’s plan: pay increases only at the minimum

With RAC’s refusal to accept our claim for fair annual wage increases, this means that the majority of workers will not be guaranteed an annual wage increase. Instead, RAC will apply a performance-linked pay system.

Only employees on the minimum rates of pay will receive a 1.5% increase. If you are above the minimum rates by even a dollar, you’re not guaranteed an increase. The proposed minimum rates of pay are as follows:

Just last year many major insurance companies – including IAG, BUPA and Allianz – accepted the FSU’s claim and switched to a guaranteed across-the-board annual wage increase system.

Annual Leave Loading

Another proposal that has created a lot of controversy is the proposal to remove annual leave loading. RAC is proposing to buy out your annual leave loading by giving you a one-off 1.35% payment.

Once your leave loading is lost, you will not receive the annual lump sum payment in your first pay period in December.

Performance Objectives

RAC has also refused to budge on the introduction of fair and transparent setting of performance objectives/KPIs. A further concern is that these performance objectives cannot be challenged by an employee if he or she feels they are unfair.

Next Steps

Have your say – tell us if the proposals made by RAC are acceptable. The FSU will be holding a short Zoom meeting on Monday 9 August 2021 at 6pm (AWST).

From your FSU Worker Council
Gerry Beck,
Steven Filardi,
Cameron Brent-White


Authorised by Julia Angrisano, National Secretary