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


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news