IAG Newsletter Issue1 template.indd by vcl99353

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									                                                                                ISSUE 1                    SUMMER                         2008

INSIDE
         IAG pay survey results

         A simpler pay system

         How to get involved




 Pay Talk                      IAG UNION NEWS
                                                                         WHAT WE ARE AIMING FOR:
                                                                          ANNUAL COST OF LIVING INCREASES
                                                                          REWARD FOR PERFORMANCE
                                                                          ACHIEVABLE TARGETS




                               82% want annual cost of living increases
                                Over the last few months hundreds of IAG staff from NRMA, CGU, SGIO and IMA have completed
                                              the Pay @ IAG Survey. The graphs below show some of the results from the survey.

Changes you would like to see to pay                                     What do you think of pay at IAG?


100%                                                                      60%

 80%                                                                      50%

 60%                                                                      40%

 40%                                                                      30%
 20%                                                                      20%
  0%                                                                      10%
           Annual pay             Guaranteed          No change,
                                                                           0%
         increases in line      reward for good      it’s good as is
                                                                                   I get
         with cost of living      performance                                                  It’s fair   I don’t   Lacks    Doesn’t
                                                                                  above
                                                                                  market                    know transparency reward
                                                                                   rates                                      me fairly
 82% of staff say they want guaranteed pay increases to keep in touch
 with the cost of living (inflation). This was 4.5% for the year ending
 June 2008.                                                                Only 22% of respondents were happy with their pay.


Transparency – accurate, timely and easy to understand?
  42% of respondents to the pay survey said that the system lacks transparency and they don’t know how their pay is worked out.
  Many IAG staff also complain that the pay system lacks consistency and is confusing. This lack of transparency should be of particular
  concern to IAG considering that Transparency is one of the company’s core Values.
                                                                                                                       Pay Talk
How does your pay measure up?
                                                                                                 SomePayFacts
                                                                                                                             Consumer Price
                                                                                                                             Index (Inflation) -
                                                                                                                             Year to June 08


                                                                                                                           The average Fixed
A Simpler Pay System                                                                                                       Pay increase in the
                                                 This doesn’t really assist the average                                    insurance sector
We propose that a better pay system would
                                                 employee but it is the source of market rates                             2007-2008 (not
be simpler and transparent, involving three
                                                 information that many companies use.                                      including bonuses)
key elements:
                                                 Such surveys have been criticized as
  Annual pay increases to keep in                being prone to participating firms                                          Average
  touch with the cost of living.                 understating their pay rates in order to                                   Insurance
                                                 influence the market rate.                                                  Executive
                                                                                                                            Pay Increase
  Rewards for staff that are meeting                                                                                         2007-2008
                                                 The FSU undertakes ongoing research
  or exceeding expectations.
                                                 into salary rates and pay increases in the

  Achievable targets based on
                                                 insurance sector.
                                                                                                    IAG UNION
  realistic workloads.                           Some of the public sources of information
                                                 on insurance rates of pay include the           NEWS WEBSITE
                                                 Hays Salary Guide and the Australian
                                                                                                  Check out our IAG dedicated pages
What are Market Rates?                           Bureau of Statistics.
   Many IAG staff have asked for more
                                                                                                  on the FSU website for :
   information about market rates and how        Go to the FSU website:                             Full Pay@IAG survey results.
   different companies pay their staff.            www.fsunion.org.au and the Pay @                   All the comments from the Pay@IAG
                                                 IAG campaign page for links to the Hay             survey – there’s hundreds.
   Very few insurance companies publicly         Salary Guide and the ABS websites.                 Direct Links to the Hays and
   release their rates of pay – so how does                                                         ABS websites.
   anyone really know the “market rates” for                                                        Recent FSU Updates relevant to IAG
   their job?                                  Isn’t it time for a better pay
                                               system at IAG?
   Companies such as IAG subscribe to            FSU members are building a network
   an annual salary survey, which                of staff who want to work together to
   involves a research company                   get new collective agreement including a
   collecting annual salary information          better pay system.
   from various organisations.
                                                 If you are interested in being involved
   A condition of access to the results is       in this please contact your local FSU Rep         FSU Member Rights Centre
   that subscribing participants keep the        or the FSU Members Rights Centre on:               1300 366 378
   information confidential.                      1300 366 378.                                                 www.fsunion.org.au
                                                                                                            fsuinfo@fsunion.org.au
                                                                                                      Authorised by Leon Carter, National Secretary

								
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