Standoff between BSP and Fiji Bank and Finance Sector Union over staff remuneration

Bank South Pacific says they remain responsible and fair with staff remuneration while the Fiji Bank and Finance Sector Union is now warning that their standoff with BSP could result in industrial disturbance in BSP branches around the country.

This is after the union said they are at a deadlock with BSP in terms of staff remuneration.

BSP Country Head Haroon Ali says over the last 12 months they have engaged with the union, in good faith in relation to the annual salary reviews adding unfortunately they were not able to reach consensus despite several rounds of discussion.

Ali says last Friday, BSP advised the union that it will not delay remuneration to its staff any further and will align all staff salary in accordance with its Group mandate. He says this was rejected by the Union resulting in a deadlock in negotiations.

He says BSP wishes to state that there is no existing Collective Agreement between the Bank and the Union that binds it to any historical arrangements.

Ali adds on Tuesday the Union wrote officially rejecting BSP’s market movement rate of 1.44 percent and proposed an alternative of 4 percent. He says regretfully, the Union has not provided any details in terms of how it reached this 4 percent rate.

He further says in 2019, while discussing the 2018 salary review with the union, the bank had clearly stated that it will move to the Group model to align Fiji to one single group operating model that also had the two common previous component of a market movement rate based on 80 percent of Consumer Price Index and a performance based rate.

The BSP Head says last year the bank accepted a 3.3 percent market movement as the average CPI for 2018 was recorded 4.08 percent which at 80 percent equates to 3.3 percent. He adds that this is exactly the same formula that they have used for 2019 and while the union accepted BSP’s market movement rate last year, they have rejected the same this year.

Ali adds the Union has not acknowledged that BSP fully rewarded staff with excellent annual bonus for their performance. He says in addition BSP Staff also receive non cash benefits such as concessional lending rates on all borrowings, survivor benefit/term life, free housing on bank initiated transfers outside staff home town, free uniform for all staff and staff amenities.

He says they note with concern the Union’s comment about a potential industrial disturbance at BSP adding they have him referred to the definition of strike in section 4 of the Employment Relations Act 2007 and refer to Part 19, Division 8, Section 191BN and 191BQ of the same act and trust that the law will be complied with.

Ali further adds that the Union should realise that any adverse impact from industrial disturbances will no doubt have unintended consequences on staff rewards in 2020 and says therefore, to protect the interests of their staff and customers, BSP will take all necessary steps to protect its business.

Meanwhile, Fiji Bank and Finance Sector Union National Secretary, Sailesh Naidu says last year the Bank increased the salary by a 3.3 percent market movement.

Naidu says this year the Bank proposes to change the entire matrix for salary increment and is compelling the union to accept an average increase of 1.38 percent based on performance.

Naidu adds the Union will not concede to this deal and advised employees to not accept it either.

He says they are now at a deadlock in negotiations since the Bank now wants to implement the change without the agreement of the Union.

Naidu has warned in a statement that BSP Branches around the country and customers could expect disruptions in customer service in BSP Bank as a result of this dispute.

When contacted by Fijivillage on the issue of deadlock and the potential industrial disturbance in BSP branches around the country, Naidu says he will comment today.