Although the USA has its own special political and economic issues, it is worth noting how President Obama has responded to the latest round of bank executive bonuses by firstly proposing to limit the banks’ ability to own, invest in or sponsor a hedge fund or a private equity fund and secondly to limit the consolidation of the financial sector.

The President’s comments are worth reading in full here. They are very emotional ending with:

So if these folks want a fight, it’s a fight I’m ready to have. And my resolve is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see soaring profits and obscene bonuses at some of the very firms claiming that they can’t lend more to small business, they can’t keep credit card rates low, they can’t pay a fee to refund taxpayers for the bailout without passing on the cost to shareholders or customers — that’s the claims they’re making. It’s exactly this kind of irresponsibility that makes clear reform is necessary.

We’ve come through a terrible crisis. The American people have paid a very high price. We simply cannot return to business as usual. That’s why we’re going to ensure that Wall Street pays back the American people for the bailout. That’s why we’re going to rein in the excess and abuse that nearly brought down our financial system. That’s why we’re going to pass these reforms into law.

The Australian Government is currently deciding on its response to the Productivity Commission Report on Executive Remuneration and it will be interesting to see whether it adopts similar language.

Listen to BBC Business Daily report.

Langes has drafted a Remuneration Committee Charter and Remuneration Policy to comply with the amendments to APRA APS 510. LCAP members can download the documents here.

The new threshold is $354,530 (down from $364,100). The next change will be on 10 February 2010.

Further information is available at Hardship Threshold.

From 1 July 2010 (when the National Credit Law starts) the threshold will be fixed at $500,000.

The Fair Work Act requires employers to collectively bargain with employees where a majority of employees want this, and to do so in “good faith”.

When a bargaining process commences (which can happen at any time) an employer is required, within 14 days, to provide each employee with a notice of the right to be represented by a bargaining representative. This may be anyone (including a union, provided they are entitled to represent the employee in that particular role). Employers cannot refuse or deny to recognise a valid bargaining representative.

If an employer isn’t prepared to bargain, a bargaining representative can apply to Fair Work Australia for a determination that a majority of “employees” wish to bargain with the employer. FWA may then make orders to this effect.

“Good faith” bargaining, includes:

• Attending and participating in meetings at reasonable times;
• Disclosing all relevant and non-confidential information in a timely manner;
• Responding and giving genuine consideration to proposals and reasons for responses to those proposals; and
• Refraining from “capricious and unfair” conduct that undermines freedom of association or collective bargaining.

Any agreement reached in a collective bargain must meet the BOOT (Better Off Overall Test) according to FWA, and comes into effect seven days after its approval is received.

Langes has experience dealing with the Finance Sector Union and can assist with negotiations.

Implementation of the credit reform changes will fall into 2 categories: firstly, registration and licensing and secondly, your credit procedures and documents.

We suggest you set up a project committee if you haven’t already done so.

We will be providing general support through our Compliance Assurance Program and customised support as you require.

We have a dedicated consumer credit reform website here which features a preparation checklist.

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