Bank workers back Bollard’s message to banks

For immediate release

Thursday 11 December

Bank workers back Bollard’s message to banks: put people before profit

Bank workers’ union Finsec is supporting Reserve Bank Governor Alan Bollard’s call to banks, to “share the pain” and be part of the solution to the current economic situation.

“It is time for banks to put people before profit. Rather than just taking through the public underwriting of deposits and guarantees of wholesale borrowing the banks can be part of a solution to the current economic situation,” said Finsec Campaigns Director Andrew Campbell.

Finsec is calling on the banks to commit to:

1. Stop contributing to rising unemployment. Banks should not cut any more local jobs and give assurances of job security to current bank staff

2. Pass on full OCR reductions to interest rates charged to bank customers

3. Suspend the system of sales targets that pressure staff to sell debt to customers

“Banks have continued to generate massive profits while ordinary Kiwis have paid the price through high interest rates and job losses within the sector.”

“The big four Australian owned banks made combined profits of more than $2.5 billion in the last financial year. They are in a strong position to help get the economy’s wheels turning again. This won’t happen though if they keep laying off staff and prioritising returns to Australian shareholders above our national interest,” said Campbell.

“It is the responsibility of both the government and the private sector to work in unison to develop a shared plan for economic recovery. Banks are part of the problem, and they can afford to be part of the solution,” said Campbell.

Additional information

                    The ORC has been reduced 3.5% since July.

                    Over the course of the year ANZ National bank has announced restructurings that will see around 900 jobs from the New Zealand economy.

ENDS

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