The Finance Sector Union (FSU) has provided an update on its pay bargaining with IAG.

IAG Ltd is a general insurance group that owns brands include NRMA, SGIC, SGIO, State Insurance, and others.

Negotiations in the last week between IAG and FSU for a new enterprise agreement continued and there appears to have been progress on one key issue.

“After months of negotiation we are close to a final settlement,” the FSU said in a statement on Friday.

Subject to an attractive pay offer, the union has reached an in principle agreement on two outstanding matters: compassionate leave and annual shutdown.

“[We] hope to be able to report back settlement with a pay offer that guarantees an increase to your real wages.”

“We expect IAG to table an attractive pay offer this Friday (February 19),” the FSU said.

The FSU put the following table on its website to outline the deal.