RABOBANK Australia Limited is working with the Australian Prudential Regulation Authority (APRA) to address its concerns in relation to Rabobank Australia’s funding agreement with its global parent.

Rabobank Australia CEO Peter Knoblanche said Rabobank Australia has a strong capital position and long-standing stable parent funding. 

“As noted by APRA, Rabobank Australia is financially sound and has a strong liquidity and funding position,” mR Knoblanche said. 

“This matter relates to a type of clause contained within the funding agreement with our parent which APRA has recently clarified has implications on the way liquidity coverage ratios are calculated and reported.  We are working with APRA to ensure this agreement is amended appropriately,” he said.

Rabobank managing board member, responsible for the bank’s international Rural and Retail Business, Berry Marttin said the Netherlands-based global Rabobank stood fully behind its ongoing funding commitment to its Australian subsidiary and the funding agreement was intended to reflect this complete commitment.

Mr Marttin said Rabobank Australia was a successful growing business and a core part of Rabobank’s growing international agricultural banking operation.

Mr Marttin said both Rabobank globally and the Australian subsidiary were “rock solid financial institutions with extremely strong liquidity positions”.

“Rabobank globally is among the most solid and creditworthy banks in the world, while Rabobank Australia Limited in its own right is a financially strong, stand-alone business, with a proven record of many years of healthy performance and sustained growth,” he said.

About Rabobank

Rabobank Australia is a part of the global Rabobank Group, the specialised in food and agribusiness banking. Rabobank has 120 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 38 countries, servicing the needs of about 8.4 million clients worldwide through a network of more than 1000 offices and branches. Rabobank is one of Australia’s leading agricultural lenders and a significant provider of business and corporate banking and financial services to the food and agribusiness sector.

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AN INDUSTRY industry association has released new data that shows  large-scale pay rate discrepancies occur in two of three organisations.

The findings come from a survey commissioned by the Australian Payroll Association (Australian Payroll Association). They asked 601 payroll managers across the country’s big and small businesses and across a multitude of different industries where they mostly see pay gaps.

Overall, 69 percent of payroll managers admitted  they see significant differences in pay rates between employees who do the same work or have similar responsibilities.

Among these respondents, 54 percent said they saw experience and longevity in the company as the biggest factors behind a pay gap. Specifically, 30 percent said they saw a pay gap mostly between less experienced and more experienced employees, while 24 percent said they saw the disparity mostly among new employees and those who had been with the organisation for longer.

Being well networked and playing politics seems to get employees ahead. One in five (20%) of payroll managers see pay gaps mostly between those who play politics well and were well networked in the organisation compared to those who don’t do either well.

Sixteen percent of payroll managers felt that pay discrepancies occurred mostly between employees who did and didn’t work in departments that bring in, or are responsible for, more of the company income.

Just 7 percent of payroll managers that saw variations in pay for the same work claimed that it was mostly due to gender differences, while 2 percent stated that it was because of an employee’s age. 

Pay gaps more widespread in larger organisations

The survey revealed that just 58 per cent of payroll managers in small business (1-50 employees) saw pay gaps between employees who do similar work or have similar responsibilities. This statistic jumped to 75 percent of payroll managers in organisations with 500-10,000 employees.

Small organisations were twice as likely to have pay discrepancies between less experienced and more experienced staff members: 28 percent of payroll managers in small businesses (11-50 employees) see these differences in pay, compared with just 14 per cent of payroll managers in large organisations (500-10,000 employees).

In contrast, 21 percent of payroll managers larger organisations (500-10,000 employees) saw a pay disparity between employees who were new and with the organisations longer, compared with just 11 percent of payroll managers in small businesses (1-50 employees).

By a similar token, 16 percent of those in large organisations (500-10,000 employees) reported more differences in pay rates between employees who worked in areas that brought in less company revenue or more revenue, compared with just 7 percent of payroll managers in small businesses (1-50 employees) who said the same thing. 

Not all industries are made equal

The survey highlighted the factors that might contribute to pay inequality across various industries.

Payroll managers in manufacturing (37% of respondents) and building and construction (35% of respondents) saw pay differences mostly between less and more experienced employees – more than any other industry.

Thirty-one percent of payroll managers in IT and telecommunications reported that the inequality in pay occurred mostly between new and long-standing employees – a rate higher than in any other industry.

One in four (25%) of organisations in the professional, scientific and technical services attributed the disparity in pay to not being in a part of the business that earned the most revenue – a rate higher than in any other industry. In fact, only 7 percent of those in the financial and insurance services reported this as the main cause for pay discrepancies.

Employees in education and training were more likely to face differences in pay if they did or didn’t play politics or networked inside the organisation – a reason chosen by 27 percent of payroll managers in this industry.  

Tracy Angwin, CEO of the Australian Payroll Association said, “Our research shows that pay gaps are still prevalent in the Australian workforce, however they aren’t always based on obvious factors. We knew that a reliable group to base our research on would be payroll managers, who are responsible for processing employee payslips and have visibility to individual salaries.

"From both my, and payroll managers’, experience, discrepancies in pay packets can be due to a myriad of reasons. While there is no legislation that rules out pay inequity between employees who have similar responsibilities, employees must be paid more than the minimum required by law.

"For organisations who want to eliminate the gap I recommend they regularly analyse and monitor their payroll data," Ms Angwin said. "Often, it’s helpful to have this carried out by independent expert consultant or specialist payroll company, who can assess any gender and other pay gaps, and incorporate this into their monitoring process.”

Australian Payroll Association’s pay rate results, taken from 601 payroll managers

About Australian Payroll Association

Australian Payroll Association is Australia’s leading network in payroll training, consulting and advisory for employers. It offers end-to-end payroll process reviews, compliance auditing, specialist recruitment services, payroll qualifications and training courses, and a membership program. Established in 2010, Australian Payroll Association offers the only nationally accredited payroll qualifications at Certificate IV and Diploma level through its registered training organisation, Australian Payroll Institute. It also holds annual events including its national conference and end of year seminars, in addition to releasing an annual Payroll Benchmarking Report. It also has a regular digital podcast series called ‘Talking Payroll’. For more information, visit austpayroll.com.au.

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QUEENSLAND Resources Council (QRC) has welcomed the roll out of a state-wide safety reset to remind all workers about the dangers and potential fatal risks of working in the resource industry.

QRC chief executive Ian Macfarlane said by the end of August every miner would have attended a thorough safety briefing focussing on the fatal risks at their mine site.

“Following a safety summit led by Mines Minister Dr Anthony Lynham and attended by industry and union representatives it was decided every mine worker on every site will stop work to have a two-way conversation with their employers about fatal risks,” Mr Macfarlane said. 

“As an industry we will make sure when people leave these session they are fully aware of the serious risks they face at work and that they have an opportunity to raise any safety concerns that they have.

“Safety officers will distribute a comprehensive package of information to sites which will be discussed with workers during the safety sessions along with input from company executives to demonstrate that a commitment to safety starts at the top," he said.

“Industry has been improving its safety and improving the way it goes about increasing the knowledge of all the workers in the industry. We will continue to work with the CFMEU, AWU and the Queensland Government to ensure that safety remains the number one priority for all companies.

“Everyone who works in a mine – or any other workplace for that matter – is entitled to leave for work and return home safely to their loved ones.”

www.qrc.org.au

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QUEENSLAND'S RESOURCES jobs market is outpacing job vacancies in the rest of the state’s economy at a rate of 15 to one, according to analysis from the Queensland Resources Council (QRC).

QRC chief executive Ian Macfarlane said the figures in the latest State of the Sector report reinforce the importance of the resources industry, "especially when our agriculture sector is doing it tough".

“If Queenslanders are looking for a job, they need look no further than the resources sector,” Mr Macfarlane said.

“The resources sector is hiring and the majority of the jobs are in regional areas.”

According to the Queensland Major Projects Pipeline Report, around $2 billion of resource projects are currently under construction with a further $19 billion in the pipeline to 2022-23.

“This growing project pipeline has propelled the sector’s labour economic demand,” Mr Macfarlane said.

“Queensland job advertisements for resource-related jobs have risen at around fifteen times that of all jobs in the Queensland economy. 

“In the three years to April 2019, the number of job advertisements for mining- related occupations has increased by 94 percent, whereas the number of job advertisements across all industries increased by just 6 percent," he said.

“The most recent jobs figures from the Australian Bureau of Statistics show Queensland’s trend unemployment rate is now at 6.3 percent.

“In the year to date, the unemployment rate in resources regions has been substantially lower than the national rate.

“The development of Queensland’s resources sector pipeline provides an opportunity to create good, high paying jobs especially for regional Queenslanders.

“That’s why it’s so important that the Government provides a stable and transparent investment framework, including no sudden royalty hikes and a clear set of rules for all projects," Mr Macfarlane said.

“According to the QRC’s latest CEO Sentiment Survey, 53 percent of QRC member CEOs expect to increase the total workforce at their Queensland operations over the next 12 months—with 10 percent planning a substantial increase. Not a single CEO said they planned to reduce their workforce in the coming 12 months.

“But we can’t take these job opportunities for granted. Industry, government and regional communities must all row in the same direction to deliver on those opportunities."

www.qrc.org.au

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