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


Union welcomes banking crackdown while urging caution


FIRST Union welcomes banking crackdown while urging caution on sales targets

Commerce and Consumer Affairs Minister Kris Faafoi’s announcement that stricter controls on banks and insurance companies will be introduced in new legislation is a welcome step in the right direction, but the Minister needs to be vigilant about how banks continue to use sales targets under different classifications, FIRST Union said today.

“We’re pleased to hear that the Minister recognises that financial sales targets for bank and insurance workers are unfair for customers and workers, and they ‘put profits ahead of people’,” said Tali Williams, FIRST Union Secretary for Retail and Finance.

“The Financial Markets Authority and Reserve Bank are right to be concerned that these targets pressure staff into the difficult position of up-selling services that customers may not need in order to meet profit-driven performance requirements.”

Minister Faafoi has signalled that impending legislation will introduce a new conduct licensing system for financial institutions like banks and insurers, stricter requirements to meet in terms of customer treatment, and a ban on sales targets.

“The Minister does need to be careful in dealing with these institutions when it comes to sales targets – we’ve already heard many reports that sales targets continue under other names, operating much the same as before, despite what the banks and insurance companies claim publicly,” said Ms Williams.

“Another important aspect is to ensure that regulators like the FMA are well-resourced enough to adequately monitor methodologies in these industries – often, that work falls to unions like ours, where members are seeing on-the-ground practices that jar with what banks are saying publicly.”

“We’ll be in touch with the Minister to offer our expertise in the area while the legislation is being drafted – workers’ voices are crucial in getting good law that’s informed by contemporary practice in the industry.”

“A commitment from banks is not enough on its own, and any law will need teeth to be credible.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>


New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>


Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>


"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>