Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Banks drive inflation through performance pay

Media Release
Finsec, the finance workers' union

Thursday 3 November 2005

For immediate release

Banks drive inflation through performance pay

Yesterday Reserve Bank Governor, Alan Bollard, made a speech warning that banks are helping to fuel inflation by heavy leading and competitive promotion of credit. Finsec, the union representing finance workers in those banks supports Dr Bollard’s concerns. It believes that the way banks use sales targets to force their workers to sell more and bigger credit packages such as home mortgages is exacerbating the problem.

“Most major banks have pay systems that compel their staff to continuously sell more and more products to customers.” Said Finsec’s Campaign Director, Karen Skinner. “They set sales targets for their staff to meet if they are to receive the performance component of their pay. Then regularly revise those targets upwards so that more and more selling of mortgages and loans is required each year.”

“Not only is this increasing the amount of money that New Zealanders are borrowing each year, it is placing significant stress on staff to sell more and more products in an increasingly competitive and tight market.” Said Ms Skinner. “Workers across all the banks are reporting that the stress from targets and performance pay is becoming a health and safety issue. Now Dr Bollard is saying that it is also a health and safety issue for the whole coutry.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Gita Hits NZ: 'It Was Literally Like A Wall Of Water'

"We were looking at the river at 80 cubic metres at about 4pm thinking it was amazing that we'd dodged the bullet ... an hour and a half later it was 600 cubic metres, and it just kept going up to 900 from there." More>>


America's Cup: Another Day, Another Cup Village Plan

A fourth option modelling what an America's Cup Village in Auckland might look like has arrived today as a planning deadline nears with no agreement in sight.More>>

Closing Or Selling Regionals: Fairfax Starts NZ Endgame

Fairfax Media Group will close or sell 35 percent of its New Zealand print titles as the Australian group pursues a digital strategy for the kiwi unit, now rebranded Stuff. More>>

Fletcher Building: Norris Steps Down As Chair After New $486M Loss Provision

Ralph Norris will step down as chairman of Fletcher Building after the company took a further $486 million provision for project losses at its Building + Interiors unit and said 14 of the unit's 73 projects, worth $2.3 billion, are loss-making or 'on watch'. More>>


WWF: Concerns With Suggestion To “Scrap” Fishing Monitoring

“Our Pacific neighbours, like Fiji and the Solomon Islands, are making this work with far less economic resources than New Zealand. There’s no reason the government can’t get this done by October.” More>>


Stink one!: Stink Bug Invasion Could Cost NZ Billions

An invasion of the brown marmorated stink bug - the pest discovered recently in three Japanese car shipments - would devastate New Zealand's fruit, vegetable and wine industries, destroying more than $4 billion of export value and costing thousands ... More>>