Bank of South Pacific, BSP, has assured the public, including their valued customers that it’s “Business As Usual” for all its operations Fiji wide.
Following talks between staff and Executive Management in the spirit of open communication, we assure that we will continue to diligently serve all customers at all our service channels.
The Bank has condemned the statements made by the Fiji Bank & Financial Sector Union and has labelled it irresponsible.
Any form of industrial action – or any threats of it – undermines the trust of our customers.
BSP are entrusted with customer’s hard earned funds and we are duty bound to provide access, as and when they need it.
2019, while discussing the 2018 salary review with the Union, the Bank had
clearly stated that it will move to the Group Model to align Fiji to one single
Group Operating Model that also had the two common previous components:
- A market movement rate based on 80% of CPI; and
- A performance-based rate
Last year the Union accepted a 3.3% market movement pay-out guided by the long accepted formulae of 80% of the average CPI, which in 2018 stood at 4.08%. When conducting its Annual Salary Review this year for 2019, the Bank maintained the same formulae and awarded a Market Movement Adjustment of 1.44% despite the average CPI, year-on-year being negative 1.9%.
While the Union accepted the BSP market movement rate last year, it has not explained why that same calculation is being rejected this year.
The Union also failed to explain how they reached their demand of 4% market movement.
The Union has not acknowledged that the Bank has rewarded staff with an annual bonus for their performance.
BSP paid an average of 11.4% (as a percentage of Total Salary) in bonus to its staff, at the Banks’ discretion, between 2013 and 2019, over and above the annual salary increments.
Based on Reserve Bank of Fiji’s report, the average CPI for 2019 is 1.8%.
An important point to note is in that since the last quarter of 2019, inflation rate has been reported as “negative” or in other words,
Fiji has been experiencing a deflationary period.
This has further increased to negative 3.0% in February 2020. In essence, the CPI for the last 5 months has been at an average of negative 1.4%.
BSP acknowledge the Union’s comments around the bank’s profit performance between 2017 and 2019.
BSP is indeed proud of this achievement which reflects the very high level of commitment of our staff.
BSP call on the Union to work with them in an open and transparent manner which promotes good faith and is in the best interest of BSP staff and your members.