The USU was invited to a consultation meeting late on Monday, to occur on Tuesday 7 July 2020. The outcome of the consultation meeting was to advise of Cubic’s intention to vary the Enterprise Agreement (EA).

Within the last two months, you would have received an email from Mr Brad Fellman, President of Cubic regarding a world-wide wage freeze due to the COVID-19 pandemic. The USU became aware of this correspondence during the meeting on the 7th.

As such, Cubic has asked employees to vote in favour of reducing the 2020 wage increase from 3% down to 1.75%, due to Mr Fellman’s email as well as a reduction in the variation revenue associated with the ETS contract.

This wage increase is to apply in the first full pay period in August 2020.

The vote is scheduled to occur on Thursday 16 July 2020, between 6am and 6pm via survey monkey on email.

During the consultation meeting on the 7th, the unions requested a clause be included in the varied EA to protect against job losses during the period of August 2020 to July 2021. The idea being that since employees have agreed to a reduction in the annual wage, that their employment would be protected from further COVID-19 related cost saving measures. At the time Cubic, indicated they would include a clause to this affect however have since flipped and the varied EA does not include such a clause.

During consultation meetings with employees on 8 July 2020, the USU queried inclusion of a clause in the varied EA to facilitate a review of the financial position of the ETS contract to determine if any of the remaining 1.25% increase could be applied in the 6 and 12 months following (as an undertaking). Cubic have elected not to include this clause.

It is our position that without a job guarantee clause or an undertaking to review the lost 1.25% wage increase, that the offer from Cubic is not wholesome and requires thoughtful consideration.

An inference can be taken from all of this: Cubic needs to recover a certain amount of revenue and this will occur one way or another.

Either, you vote yes to the EA to accept the 1.25% reduction in the annual wage increase for 2020, or you vote no to retain the 3% wage in increase in 2020. Either way, there is no guarantee jobs won’t be lost.

The decision is yours.

If you would like to discuss the content of this email, please call me on 0417 420 924 or by email to