Many insurance industry staff will suffer pay cuts and have their award conditions watered down under a ruling last week by the Australian Industrial Relations Commission.

It has decided wage increases can be phased in over five years, but some job conditions and allowances enjoyed by staff at present will go in January.

Finance Sector Union National Policy Director Rod Masson says the commission has chosen the “lowest and least representative award in the financial services industry” – the credit union award – to cover the whole industry.

“Our concern is that provisions like minimum requirements of hours for part-timers and casuals, and minimum hours worked on weekends will disappear come January 1, and there’s no way to get them back,” he told insuranceNEWS.com.au.

Mr Masson says the employees most likely to suffer are those in insurance, who are more reliant on the award for their terms and conditions.

“The insurance award itself will no longer exist, and that is the basic building block from which conditions in the insurance industry spring,” he said.

The commission says to avoid increasing costs for employers and disadvantaging employees it has adopted terms and conditions with “wide application” in the existing awards in the relevant industry or occupation.

“Some wages and conditions will increase as a result of moving to the terms which apply elsewhere in the industry,” it said. “Equally some existing award entitlements will not be reflected in the applicable modern award because they do not currently have general application.”

Mr Masson says the union is doing everything it can to make sure employers preserve or advance the present conditions of employment. He expects to contact insurers individually to discuss the situation.