FIRST Union representatives are drawing attention to the collective efforts of several major banks to "offshore" or outsource key banking jobs from local workers and are calling on the Government to do whatever’s necessary to ensure that New Zealand’s richest employers aren’t taking thousands of jobs away from New Zealand workers in an attempt to lower wage costs.

Callum Francis, FIRST Union national organiser for finance, said members across the ‘Big Four’ banks have repeatedly raised concerns about the volume and nature of banking jobs that are being outsourced to a third party provider or ‘offshored’ to countries like India and the Philippines, with bank workers saying that customers are suffering from poorer service while bank workers face redundancies and job insecurity, and New Zealand’s financial sector loses vital expertise and the opportunity for growth.

"The driving force behind banks’ offshoring and outsourcing of New Zealanders’ jobs is a desire to reduce wage expenditure and increase profit margins at any cost - it’s based on unlimited greed," said Mr Francis.

"During a time of increasing unemployment and a rising cost of living, it’s unfathomable that successful companies would prioritise increasing already obscene or super-normal profits at the expense of New Zealanders and the communities that support them."

Mr Francis summarised the current offshoring and outsourcing projects at three of the ‘Big Four’ banks based on restructuring and consultation documents provided to FIRST Union in the representation of affected members. Mr Francis said that:

• ANZ, over the last 2 years, has been reducing or reallocating Lending services and other back-office roles (non-customer facing) and functions. Initially, ANZ started with what was referred to as a "50/50 split of work"; sending 50% of the work offshore to be completed. However, this has been a starting point for a further redistribution of jobs offshore. The eventual outcome in most instances has been at least a 25/75% split favouring offshored jobs rather than keeping work in NZ. Mr Francis estimates that hundreds of jobs have been offshored by ANZ over the last two years. ANZ declared a statutory net profit of $1.04 billion for the six months ended March 2024.
• BNZ have been even more aggressive in their approach to offshoring NZ jobs. Last year, BNZ got rid of approximately 80 roles from within their Financial Crime Operations by offshoring 75% of the Fraud team. This signalled the beginning of another more recent process with similar justification provided to offshore another 40 roles from Lending services and "non-customer facing" roles who deal with apparently "less complex" transactions. Mr Francis estimates that at least 130 jobs have been offshored by BNZ over the last two years. BNZ declared a statutory net profit of $762m for the six months ended March 2024.
• Westpac has for 5 years been outsourcing a significant number of roles to a 3rd party provider. This has meant that they have moved to a model of 50% (if not greater) of all contact centre general queries being answered by workers employed by a 3rd party. This has unfortunately paved the way for 1/3rd of the work received by the bank's customer care department to also be received and actioned by this 3rd party. Mr Francis estimates that at least 100 jobs have been outsourced by Westpac over the last two years. Westpac declared a statutory net profit of $477m for the six months ended March 2024.

Mr Francis noted that FIRST Union officials receive only a proportion of the information related to offshoring and outsourcing proposals, and the information collected here may only represent the tip of the visible iceberg, he said.

"The justification used by banks refers to "worldwide expertise, capability and economies of scale, opportunities to create simplicity", which for organisations that say "employees are their most valuable asset" and that purport to support New Zealand and be part of the community, does not remotely live up to the values or behaviours they claim to champion."

"Offshoring should be seen for what it is - an admission that banks would rather send jobs and opportunities overseas where labour is cheaper and less regulated, when they should be building capability within New Zealand and helping to develop a progressive industry."

"Bank workers tell us that efficiencies have not been made, expertise has been lost rather than gained in New Zealand, and before long, they feel the banks will start bringing all of this work home, as has happened in numerous other countries."

"Bank workers know customers are frustrated and don’t want local jobs being given away or their personal private information being distributed internationally."

"This miserable ‘wage grab’ by big banks doesn’t just rob New Zealand workers of opportunities to upskill, but it drives bankflation through excessive profitability and depresses market pay rates for the entire industry."

"It’s time for our Government to take note and make their expectations of mega-employers like the Big Four clear - without intervention, banks will continue to swing the hatchet and offshore thousands more jobs, and we will all be worse off for it."

"Banks used to be seen as a key part of our communities; places that were there to help you in tough times and give useful advice. Now they’re abandoning our communities and turning their backs on New Zealanders, just because they think it'll make them a few extra bucks - it's disgraceful."

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