The following article was published in "The Guardian", newspaper of the Communist Party of Australia in its issue of Wednesday, May 9th, 2001. Contact address: 65 Campbell Street, Surry Hills. Sydney. 2010 Australia. Phone: (612) 9212 6855 Fax: (612) 9281 5795. CPA Central Committee: <[EMAIL PROTECTED]> "The Guardian": <[EMAIL PROTECTED]> Webpage: http://www.cpa.org.au> Subscription rates on request. ****************************** Banks on track for $10 billion bonanza The big four banks are projected to steal a whopping $10 billion profit this financial year, with financial analysts applauding their cost-cutting measures. Meanwhile, back in your local branch (if it hasn't closed), the queues lengthen, the mass sackings continue, the paltry pay offer was rejected, and Westpac's chief (CEO) finally realises, "the public don't like us". by Jules Andrews The last and largest of the profits announced was by the National Australia Bank (NAB) who stripped the public of a massive 29 per cent jump in profit, up to $2 billion in just six months. Stating that "our strategies are delivering", NAB's CEO Mr Frank Cicutto described the bank without a hint of irony as "firing on all cylinders". NAB has recently sacked 5000 staff, and closed 70 branches in the last year. And while the GST has prompted a sharp increase in bankruptcies, the banks have shielded themselves against bad debts by slugging customers with huge fee increases and wider interest margins on loans and credit cards. As the profits were announced share prices soared, and all banks rewarded their owners with fat dividends ripped straight out of customers' pockets. If one was forced to chose a "worst offender" among the banks it would be Westpac by a nose, with a $924 million half-year profit, and a bloody-minded attitude towards its staff and the public alike. Westpac has shed 5,500 jobs in the last two years, and closed over 200 branches. In the last year alone its customer fees have risen 14 per cent. With inflation hitting six percent, it has offered its workers a raise of just 3.5 percent this year, which the Financial Sector Union has rejected as inadequate. Worst affected are staff in one of Westpac's mortgage processing centres in Adelaide, some of whom have not had a payrise for five years. While they were in the process of negotiating a new Enterprise Agreement, Westpac announced that the centre would be outsourced, with the further loss of 1200 jobs. FSU National Secretary Tony Beck said, "The announcement is even more disgusting in that... the bank has already told staff if they do not agree to work for a new provider they will leave Westpac without any retrenchment payment. "In the current Adelaide job market this is a choice many staff are unable to make." Meanwhile, Westpac Chief Executive Dr David Morgan gave a frank display of duplicity last week when addressing a meeting of the Trans-Tasman Business Circle. "We do have a problem ... the public don't like us", said Dr Morgan. He went on to admit, "every one of our common customer concerns is in some way well-founded". Citing, in particular, services for pensioners and rural areas, he said it was clear that the bank's performance had been "manifestly inadequate, and it is clear that we need to do a lot more". Yet his insight quickly turned to arrogance, as he flat-out rejected the need for even limited reforms such as re-regulation, a banking "social charter", or the extension of fee-free accounts. "This runs close to saying that the banks should share with government the responsibility for broader income redistribution, and I'm certain that no sane person is going to suggest to the electorate that we be given such powers." Clearly Dr Morgan has missed the point of regulation, which is when the government takes power "away" from banks and forces them to act fairly and responsibly, which is something the electorate is clamouring for. In fact, for all his frank admissions and crocodile tears, Dr Morgan offered consumers no concrete evidence or assurances that his bank would make any changes for the better. As Dr Morgan goes home to enjoy the lifestyle his $2.4 million annual salary affords, Mr Beck has vowed the FSU will not allow him to rest easy. He said Westpac staff were deeply shocked at their treatment by the bank, and says the FSU will oppose the outsourcing "with all available options". END END END END -- Leftlink - Australia's Broad Left Mailing List mailto:[EMAIL PROTECTED] Archived at http://www.cat.org.au/lists/leftlink/ Sponsored by Melbourne's New International Bookshop Subscribe: mailto:[EMAIL PROTECTED]?Body=subscribe%20leftlink Unsubscribe: mailto:[EMAIL PROTECTED]?Body=unsubscribe%20leftlink
LL:ART: Banks on track for $10 billion bonanza
Communist Party of Australia Thu, 17 May 2001 00:51:56 -0700
