The Finance Sector Union has claimed MyState is trying to introduce a workplace condition below the national standard, and has threatened to take the Tasmanian bank to Fair Work with allegations it has breached good faith bargaining.
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Enterprise bargaining agreement negotiations are continuing at MyState, with the bank withdrawing a condition that would have reduced redundancy entitlements.
But the FSU remained concerned at a condition that would force staff to take two weeks of consecutive leave per annual year, claiming it was in breach of National Employment Standards.
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A new pay framework could also reduce access to paid overtime for staff moving between certain bands.
The FSU sent a letter to MyState on April 23 alleging the bank had failed to respond to the union's log of claims in detail, was not providing enough time for FSU members to assess details of the bank's claims and had given a "misleading and deceptive" presentation to staff.
The parties held a meeting on Tuesday, but FSU state secretary Nicole McPherson said they still had a range of concerns about MyState's approach to the bargaining process, particularly the short timeframes.
"One of the main issues that our members are having is that when they have questions about how the new pay framework is going to operate, they're not being answered," she said.
"Staff need to be able to fully understand the offer that's on the table.
"MyState has basically said that they aren't shifting at all on their pay offer because they can't afford any more money, which is the amount the board made available for them. But when we ask how much this pay increase will cost, they came back with 'commercial in confidence'.
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"Other medium-sized banks, ME Bank for example, provided this information."
Ms McPherson said the union was still "considering" its options as to whether to lodge a breach of good faith bargaining against MyState in Fair Work.
In February MyState announced it had posted $17 million net first-half profit, but this week a company spokesperson said "some sectors of the economy" were still in difficultly and "the outlook is still cautious".
MyState disputed some of the union's claims, and said it had "made considerable movement" on redundancy and salary increases.
The bank said it had not provided misleading presentations to staff.
"What we have done is conduct information sessions with our employees, after consulting and speaking with our bargaining committee (which includes an FSU rep)," the spokesperson said.
"It is important to bear in mind that the bargaining representatives only represent amount a small amount of staff, and the FSU a very small proportion. So we need to ensure that all members of our teams remain well informed."
The bank claimed that the FSU had "agreed to the bargaining schedule at the beginning of the process".