For immediate release
Wednesday, 25 March 2009

Government can protect jobs by putting conditions on bank guarantee schemes

Finance workers are saying the government can step in and protect jobs in the finance industry by making the retention of current staff numbers a condition of its retail deposit and wholesale borrowing guarantee schemes.

Finsec, the finance workers union, has launched a public petition calling on the government to protect New Zealand workers from job loss at a time in which the major banks are looking to lay off staff despite continuing to make record profits.

“Last year the major banks recorded profits in excess of $2.5 billion dollars. They now have major tax payer support through the retail deposit and wholesale borrowing guarantee schemes. The least they can do in return is keep their staff in work rather than contributing further to the dole queue,” said Finsec Campaigns Director Andrew Campbell.

The call for job protection comes in the wake of revelations that ANZ National has redeployed into other bank roles only 58 staff out of 378 affected by offshoring of work from New Zealand to India. At the time of the announcement ANZ National said a job would be provided to anyone who wanted one.

“The banks cannot be trusted to keep New Zealanders in jobs. ANZ National has proven itself incapable of living up to its promise to keep Kiwis in work. Government intervention is urgently needed to keep the banks honest and keep local staff in work,” said Campbell.

“Protecting bank jobs means more of their profits are retained locally, more people stay in work and a genuine dividend is returned to the tax payer for their support of the banking industry,” said Campbell.

“The banks collectively employ over twenty five thousand New Zealanders. It is a significant industry and it is only reasonable to expect social responsibility conditions be placed on them given their importance to the economy and the magnitude of public support they are currently receiving,” said Campbell.

ENDS

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