(Bloomberg) -- Australia's largest bank removed secrecy clauses on salaries in its contracts, just days after a similar move by its rival.
Commonwealth Bank of Australia told employees they would be free to discuss their pay starting April 11 to boost pay equity, though they shouldn't pressure co-workers to discuss the topic, the Australian Financial Review reported.
“As part of our commitment to identify and address any perceived or actual pay inequity, we have decided to remove the pay confidentiality clauses from new contracts and waive the obligation for confidentiality in all current ones,” the AFR cited a bank spokesman as saying.
The bank added that it has publicly disclosed “gender pay equity outcomes” for the past five years, including the latest figures in its 2021 annual report.
Australian men are twice as likely to be highly paid than women, according to a report from the Workplace Gender Equality Agency. While the pay gap narrowed to 22.8% in the year through March 2021, the drop was just half a percentage point, as calls grow louder for stronger visibility and treatment of women in the country's labor force.
Read more: Men Twice as Likely to Be Well Paid as Women in Australia
The change came after union concerns that managers were disciplining workers for discussing pay, the AFR reported. The bank had rejected the claims, it added.
Smaller rival Westpac Banking Corp. said earlier in the week it will no longer stop employees from openly discussing their salaries as part of an initiative to help narrow the gender pay gap.
Read more: Banker Salaries Are No Longer Closely Guarded Secrets at Westpac
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