MyState looks to reduce workplace conditions despite posting $17 million first-half net profit

MyState chose not to negotiate a new enterprise bargaining agreement prior to the last EBA expiring in October, and is attempting to instead bring in the next round of negotiated pay increases in October this year.

Other proposed changes include being able to force staff to use their annual leave.

Staff on fixed-term contracts would be moved to maximum-term under the proposal, meaning their employment can be terminated with required notice at any time.

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Australian Services Union Tasmanian co-ordinator Aaron De La Morre said the reduced conditions were "some of the worst" he had seen from a financial services company, and were more drastic than other COVID-era agreements.

"A log of claims full of reductions doesn't match the financial position MyState is in," he said.

"A key feature is trying to minimise liability for redundancy by moving staff from fixed-term to maximum-term. It's also pushing them into insecure work.

"It seems like the company is bringing in a clause to allow to shutdown the business and use annual leave to cover closures. We see that as unreasonable and unnecessary.

"We have certainly heard from a number of members who are concerned."

Related: MyState looks to reduce workforce and increase digital offerings

On February 19, MyState released its first-half results which showed an 18.8 per cent growth in core earnings to $26.4 million and a net profit after tax of $17 million. The company described the result as "outstanding" and "excellent", driven by the bank's rapid digital transformation.

Shareholders received a dividend of 12.5 cents per share.

When asked about the EBA conditions, MyState general manager people and culture Janelle Whittle said 2020 was "volatile", and their non-executive director fee reduced by 20 per cent for six months, while the executive and management team did not receive short-term incentives for the previous financial year.

Staff received a "modest bonus" last October, according to MyState.

Ms Whittle said the looming end of government support packages could impact Australia's economic climate.

"The end of the government's assistance programs at the end of March does create some uncertainty as there are a number of health and economic risks that could slow the pace of recovery," she said.

"We value our people and their contributions to the future of MyState and will continue to bargain in good faith throughout this period."

As of February 15, fewer than 200 MyState customers were on some form of COVID-related assistance.

MyState has closed six branches since July 1 as part of its digital shift.