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To pay 4% salary increase to staff

Document date:  Wed 20 Jun 2001
Published:  Wed 20 Jun 2001 16:16:49
Document No:  177811
Document part:  A
Market Flag:  N
Classification:  Other

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2001-06-20  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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MEDIA RELEASE

ANZ today announced it would pay eligible Australian staff a minimum
4% salary increase in July and maintain employment terms and
conditions currently in place from its 1998 Enterprise Bargaining
Agreement (EBA).

The decision by ANZ ensures staff are not disadvantaged by a
protracted enterprise bargaining process following four months of
unproductive talks with the Finance Sector Union (FSU).

The existing Enterprise Bargaining Agreement and the certainty that
the increase gives staff means having a new EBA is no longer a matter
of urgency for ANZ or its staff.

Ms Sonia Stojanovic, Head of People Capital at ANZ said: "It has
become very clear that there has been little intention by the Union
to reach agreement with ANZ. Their focus appears to be on an industry
campaign rather than on the interests of ANZ staff.

"Protracted and unconstructive enterprise bargaining discussions have
now put at risk a fair salary increase for ANZ staff due in July.

"Our main responsibility is to our people. We have taken action to
pay staff a fair and timely increase. It is above the underlying rate
of inflation in a subdued economy, and is consistent with increases
already agreed in the banking sector," Ms Stojanovic said.

Negotiations for a new Enterprise Bargaining Agreement with the FSU,
which commenced in February 2001, have been deadlocked over the
fundamental issue of coverage and frustrated by an apparent lack of
genuine intent by the Union to complete an agreement in time for a
staff pay increase. ANZ feels very strongly that increases should be
made when due in July and not delayed further.

ANZ has been clear from the outset that managers, over 90% of whom
signed individual contracts, would not form part of a new EBA, and
that the negotiation should be constructive and conducted in good
faith with an intention to reach agreement. These foundations are not
in place.

Today's decision means:

* Some l5,000 ANZ staff will be paid a 4% increase for l2 months
effective l3 July 2001

* ANZ will make a corresponding salary increase in July 2002

* All existing employment terms and conditions will continue to apply

* Access to additional performance payments of between 2% and 7%.

Managers on individual contracts can expect equally fair treatment
when their salaries are reviewed in October in the normal way,
together with management incentives for performance.

ANZ has also worked to improve the working environment and benefits
for staff, including the issue of shares to all staff, provision of
personal computers at home and incentive payments for performance.

Chairman of the ANZ EBA Negotiating Team Ms Elizabeth Proust said:
"We are disappointed the FSU would not agree on fundamental issues so
we could provide our staff with the negotiated salary increase due in
July."

"Instead, in addition to their industry campaign, the FSU is focused
on bringing managers, over 90% of whom voluntarily elected to adopt
individual contracts earlier this year, under a new enterprise
bargain."

"Our decision to increase salaries and continue with our existing
Enterprise Bargaining Agreement puts the interests of our people and
our customers first" she said.

For media enquiries, contact:

Paul Edwards
HEAD OF GROUP MEDIA RELATIONS
Tel 03-9273 6955 or 0409-655 550
email edwardpl2@anz.com