By Leiselle Maraj Saturday, February 6 2010

The Banking, Insurance and General Workers Union (BIGWU) yesterday accused First Citizens Bank of going back on an agreement made last year for a 17 percent increase in salaries for the bank’s employees.

The union has taken steps therefore to have this matter taken up with the Labour Ministry and the Industrial Court.

In a statement yesterday, the trade union explained that on November 16 last year, they came to an agreement with the bank on a 17 percent salary increase on existing salary ranges, seven percent to be applied to salaries for 2009 and then five percent each in the two following years.

BIGWU and First Citizens were supposed to sign a Collective Agreement confirming this increase, among other negotiated items, on December 16 but this was cancelled due to the unexpected unavailability of First Citizens Chief Executive Officer, Larry Howai. “Since then, the Bank has advised of a revised position on salaries, upon instruction from a body called the Public Sector Negotiating Committee (PSNC) which reports, it appears, to the Cabinet headed by our Prime Minister, Patrick Manning,” the statement said.

The union explained that First Citizens new position on salary increases will affect employees who are close to the maximum of their salary range. Using the example of a worker who was close to the maximum in their salary range and receiving $600 in 2008, the union explained that they would have received a $420 increase in 2009 after the seven percent was applied which did not include their allowance. However, with the bank’s new position, this employee would receive $6,200 and an allowance of $200.

“The number of workers to be affected by this situation will increase each year as performance increments are applied and as more workers get closer to the maximum. The impact of this is to reduce payments related to the accrual of overtime, shift, pension, bonus, merit and severance benefits on workers, since these benefits will be calculated on the lower salary alone and not salary plus allowance, thereby shortchanging workers,’ the statement said.