May 31 (Reuters) – Westpac Banking Corp (WBC.AX), Australia’s No.3 lender, said on Monday it has reached an agreement with an employees’ union to raise pay by at least 2 percent in 2010 and 4 percent in 2011.
The agreement with the Finance Sector Union covers 26,000 employees at Westpac Bank but it does not include employees of St George Bank and Bank SA. The Westpac group has a total of 37,000 employees.
The agreement will be put to an employee vote and comes at a time when banks are faced with rising funding cost, though analyst say the pay increase was expected. (Reporting by Narayanan Somasundaram; Editing by Ed Davies)