Extract:

Superannuation Guarantee $($SG$)$ contributions paid by employers to an employee$$s retirement savings account $($superannuation fund$)$ are regulated by the Superannuation Guarantee $($Administration$)$ Act $1992($Cth$).$ Section $19(2)$ of this Act lists the proportion of employees$$ ordinary time earnings that an employer must pay into a qualifying superannuation fund on behalf of each employee. From July $2018$ the quantum was $9\mathrm{.}5\%.$ This will increase to $10\%$ from July $2021,11\%$ from July $2023,$ and $12\%$ from July $2025.$

The Banking, Finance and Insurance Award $2010[$MA$000019]$ has a superannuation clause $($clause $21).$ The BFI award superannuation clause specifies an employer$$s SG contribution will be at the rate prescribed by legislation, which as of $2018$ is $9\mathrm{.}5\%.$ Other organisations in the sector have enterprise agreements that have a superannuation clause that merely restate the main features of the BFI award clause and$/$or legislation, while others are more generous than the modern award and$/$or legislation.

Clause $21\mathrm{.}5$ of the modern award states SG contributions will be paid when a worker is taking $$any paid leave$.$ The Bank currently offers its employees $12$ weeks of paid parental leave. However, under the National Employment Standards $($NES$)$ a Bank employee is entitled to $12$ months of unpaid parental leave, and can request this be extended to $24$ months. Given that women are a majority of the banking sector workforce, there is a growing view among the Bank$$s senior management that the retirement savings of its employees should not be disadvantaged because they take unpaid parental leave.

The superannuation issues that require resolution for the new agreement are:

$2.$ The quantum $($percentage$)$ of the SG contribution paid by the Bank to its employees$$ superannuation accounts.

$3.$ Will the Bank increase the quantum $($percentage$)$ of its SG contribution when a worker voluntarily increases the size of their own after tax contribution to their superannuation account $($for example, fully match the employee$$s increased contribution, or only partially match the employee$$s increased contribution$)?$

$4.$ Will the Bank make SG contributions for workers who take unpaid parental leave, and for what duration $($e$.$g$.,$ only $6$ months, $12$ months, or the full $24$ months$)?$

$5.$ Please note the SG provisions in the enterprise agreement cannot be less generous than the SG legislation, and agreements cannot exclude or provide for an entitlement less than the NES.

What you need to negotiate:

$$ Your preferred position is have the Bank's SG contributions increase to $12\%,$ or at least match the ME Workplace Agreement $2017($AE$426838)$ rate of $10\mathrm{.}5\%,$ for all employees.

$$ Your secondary position is have the Bank SG contribution match that of any employee who increases their own after tax superannuation contribution. Only older workers are likely to do this, but many of the union$$s members are now planning for retirement. This is one way to reward their long period of union membership.

$$ You appreciate the problem of staff taking unpaid parental leave not being paid SG contributions. However, FUA policy is this should be addressed by changes to the legislation and not be a bargaining topic.

$$ You know the Bank wants to develop a reputation as an $$employer of choice$$ for women, and is likely to propose ways to address the retirement savings disadvantage for employees that take unpaid parental leave. Notwithstanding the policy of the FUA, any Bank proposal regarding SG contributions during unpaid parental leave can be used as a trade$-$off for other topics under negotiation.