CIBC, Scotiabank raise base pay for most employees

Canadian Imperial Bank of Commerce (CIBC) and Scotiabank are raising base salaries by 3 per cent. This will affect most employees, and is in response to pay increases at competing banks. The former’s pay hike takes effect in July, while the latter’s kicked in on June 20.

RBC hiked pay for a portion of its staff by the same amount in May, as did Bank of Montreal. The first of the Big Five Banks to increase base pay by 3 per cent was TD April.

CIBC is also raising minimum wage in July for its Canadian employees, to $20 per hour from $17. The bank claims it will bump up the amount to $25 per hour by 2025.

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The country’s largest banks are engaged in heavy competition for talent in many roles, including executives, technology positions, customer-facing jobs and back-office positions. High inflation and economic concerns have also driven up prices and affected the banks’ costs.

Does pay need to be increased for all employees?

Canada’s largest banks can determine who receives more pay. There is no law in Canada that requires an employer to provide consistent pay raises, and equally for all employees. What companies can’t do is determine a wage increase using discriminatory factors, such as age, gender or ethnicity. Instead, salary should be based on achievement and seniority.

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Don’t touch my wages!

While the Big Five Banks are free to lift wages for their employees, they can’t take the opposite approach and drastically cut compensation. When this is done without the employee’s permission, it can be considered a termination of their employment. A severance package – as much as 24 months’ pay – is then owed through a constructive dismissal claim.

Before you accept any negative changes to your job, or a severance package you’ve been offered, talk to an experienced employment lawyer at Samfiru Tumarkin LLP