This week IAG staff received an email notification about changes to how you get paid.
What’s going on?
IAG has an outdated pay system that may not be compliant with the Australian Tax Office in the near future. They’re changing the way you get paid not entirely to inconvenience you but to avoid breaching Australian Law.
Why the change?
IAG’s current system means not quite half of your pay is for work you have already done (4 days) and the balance is for work you are about to do (6 days in advance). This has some negative financial implications when people leave IAG and owe IAG money, it also has some issues for compliance with the tax office. The change will mean you no longer get paid in advance, and will only be paid after you have completed 2 weeks work.
Is this legal?
Yes, it is legal and within IAG’s management prerogative to decide how you get paid.
I’m not happy about it, can we do anything to stop it happening?
This may be a difficult transition for all IAG staff, particularly as most people have regular financial obligations that rely on a regular paycheck. Unfortunately this is something that IAG have decided will occur in September, so we have 6 months to prepare for the change. There is nothing you can do to stop it happening, however there are things you can do to make sure you are prepared for it.
Will I get paid less for the work I do?
No, you should receive the correct amount of pay you are entitled to - just on a different day.
How will I pay my bills and make do without pay for a month?
IAG has a number of options to help you prepare for the change. The FSU will help you to navigate the change and help you to figure out the best way to manage the change for you and your family.
What is IAG going to do to help us out?
IAG will make STI payments on 21st September for eligible staff.
Set aside some money each fortnight between now and 21 September. IAG has created an option in ESS where you can choose to set aside a small amount of your fortnightly pay between now and September. IAG will pay interest on any money you set aside and this money will be paid to you on 21st September
Apply for a hardship loan of $1000 – If approved this will be paid to you on 21st September and would be repaid to IAG over subsequent pay period.
Doesn’t IAG have to consult us before big changes?
IAG consulted with FSU regarding this change. FSU understands that this will have a big impact on employees. We encourage you to take up the most suitable mitigation strategy for your circumstances. Call the Member Rights Centre 1300366378 if you’d like someone to work through the options with you.
I pay my rent/mortgage on the same day I get paid as well as all my other bills. So now I have to change everything?
You will have to either pay your bills in advance, defer the payments due on 21st September or start putting aside small amounts of money now, to cover these bills for one pay period only. You will need to plan to cover direct debits you have coming out of your account on 21st September to avoid overdrawing your account.
Will IAG pay for a financial planner to help me rearrange my finances?
IAG is unlikely to pay for a financial planner, however if you need additional support they have advised that you should contact the People Connect team on extension 24455, use webchat at you@IAG or email PeopleConnect@IAG.com.au .
Call our Member Rights Centre 1300 366 378.
Not already a FSU member?
Now is the time to join if you are not already an FSU member. Union membership matters and you will need someone in your corner.
You can join online or call 1300 366 378.