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

 

Bank workers seek meeting with Cullen

Finsec, the finance workers' union

11 November 2005

Bank workers seek meeting with Cullen to rein in inflation

Finsec, the finance workers’ union, is seeking to meet with the Finance Minister, Dr Cullen, to discuss concerns its members hold that banks’ customer debt targets are helping to fuel inflation. The government has signaled its concern at the effect bank lending is having on inflation and is currently seeking advice from Treasury and the Reserve Bank.

Finsec believes that one of the pressures on interest rates is banks such as Westpac using performance pay targets to compel their staff to sell higher and higher levels of debt to customers. Those targets reward bank employees who sell mortgages, credit cards and other forms of lending at a much higher levels than the rewards for savings products.

The banks consistently raise the targets on their employees as they seek to take market share off each other. This means that a customer who walks into Westpac will be meeting staff who will be under pressure from their employer to encourage them into debt. The economic effect of such large growth in consumer debt is inflationary pressure.

Finsec believes that these customer debt targets have now reached crisis point.

“The Minister is obviously rightly concerned about inflation and he’s got a range of issues to consider. We think that one of those things he needs to consider is the pay systems within banks, which contribute to distorting the market and can affect inflation. Pay systems in Westpac and BNZ are not only unfair on workers, but they are hurting the economy.” Said Finsec General Secretary, Andrew Casidy.

“We’re concerned that as these targets keep growing they will end up forcing bank workers to respond to customers in ways that they are not happy with, and that the customer does not want. The undue focus on sales rather than customer service and safety is risky and unhealthy.” Said Mr Casidy.

ENDS

© 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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>