November 2, 2011

Westpac latest bank to hit profit jackpot off the back of customers and staff

Westpac’s strong cash earnings growth shows that the big Australian banks have not only survived but thrived during a global recession on the back off their own staff and customers, says the union for bank workers.

Westpac today reported a 41% rise in annual cash earnings for its New Zealand division.

“Westpac is not alone – BNZ announced an 11.5% increase in annual net profit after tax last week, and ANZ will make its announcement tomorrow,” said FIRST Union General Secretary Robert Reid.

“All of the big banks profits are well and truly back in the cycle of making huge profit jumps each year, while holding down the wages of staff and keeping the pressure on customers with high interest rates.”

“This profit announcement of Westpac comes on top of the revelation earlier that this year that its New Zealand CEO, George Frazis, is earning $NZ 5.8 million a year.

“Westpac workers go into bargaining with the company next week and we want the bank to demonstrate that their own workers are just as much a priority as paying out high dividends or $5.8 million CEO salaries,” Robert Reid said.

“Bank staff are in a similar position to many other Kiwi workers, with pay increases barely keeping up with or falling behind rising costs.

“Unlike some other employers, however, the banks are in the position to be able to pay at least 5% pay increases without scratching the surface of their massive profits.”

Robert Reid said that the banks had been operating without accountability for too long.

“With a government that won’t improve regulation of the banking sector and instead dishes out cuts to corporate tax rates, the big Australian banks have been grabbing the most profits for themselves while sharing as little as possible with customers and staff.”

Robert Reid said now that bank workers were part of New Zealand’s second largest private sector union, that there was an increased expectation that when profit rises, so should pay.

ENDS

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