Westpac weathering recession well, but needs to change sales culture

This week’s profit announcement from Westpac shows that the bank is weathering the recession well, but that the whole banking industry needs to rethink their sales culture, says Finsec.

“While Westpac have seen a drop in their profits in the midst of the downturn, they are still a profitable business in good health,” said National Organiser Michael Wood. “This is evidenced by the 4% increase in core earnings.”

Wood said that the massive 236% increase in impairment charges highlights a problem that Westpac and the other banks need to confront. “Finsec members at Westpac and at the other banks know that the banks have been reluctant to change their ‘sell,sell,sell’ culture and the sales targets that create pressure for staff to sell debt products to their customers.”

“This is more evidence that the sales culture is not only bad for staff and customers, its also bad for business,” said Wood. “Only last week union members met with Westpac at our targets forum, to try and make these targets fairer and more realistic. The ballooning provision for bad debts show that the banks need to urgently rethink their focus on selling debt to customers who can’t service it.”

Skirting the issue at BNZ

The Gossip understands that there are “rules” in fashion – guides to being well dressed from the likes of Gok or Trinny and Susannah – but fashion rules from the BNZ? We’re not so sure!

Karen Lynch, a Finsec delegate from BNZ Feilding, was disappointed by the BNZ’s fashion rule – that the long skirt option in their uniform is only for size 18 and over, and that the shorter skirt option is only for size 16 and under. Karen is a smaller size and wants to wear the longer skirt, and when she put the issue up as one of BNZ’s “Thoughts into Action” she got a huge response from her colleagues – including from staff who are bigger sizes and want the shorter skirt option.

“It’s a no-win situation,” says Karen. “Not only do we all have less choices, but people in the longer skirts know that everyone will know what size they are.” There’s been little response from the bank so far – except to say that “there are trouser or long boots (with a $300 plus price tag) options”.

BNZ’s fashion police policy raises a lot of questions. Why shouldn’t all staff have choice about what style skirt they want? Why does the bank think that certain size staff should be limited to certain clothing styles?? Shouldn’t uniforms be about being smart and comfortable and finding what suits you, rather than fitting in with the BNZ’s size rules?

We’ll keep you posted on the state of hemlines at BNZ.

Your views on ACC changes

Finsec has an opportunity to put members’ views on a series of proposed changes to ACC directly to government later this month.

The changes include:
•    A reduction in the number of hours of work required to meet the definition of Vocational Independence, from 35 hours to 30 hours per week.
•    Reversing 2008 changes that meant people suffering a Gradual Process Injury would be more likely to attain ACC coverage and assistance.
•    Allowing risk rating of experience rating, and the ability to set new rules including no claims bonuses, higher or lower levies and claim thresholds.

We are seeking Finsec members’ views of these changes, and especially any experience of Gradual Process Injury or OOS, and the process of rehabilitation back into the workforce. Send your thoughts to union@finsec.org.nz

Consumer finds financial advice sorely lacking

Consumer New Zealand this week released the findings of their mystery shoppers sent out to gather advice on investment and pre-retirement plans. The advice was referred to an expert review panel which failed all but three of the advisers.
Consumer New Zealand chief executive Sue Chetwin told Radio New Zealand that commission incentives were the reason why many of the advisers pushed particular products, and she he is calling for a complete ban on such payments. She said that the advice was “scandalously poor” and that more Government regulation was needed of the finance industry.
The panel rejected as inadequate plans proposed by many major firms, including Westpac Bank, AMP, Money Managers and Rutherford Rede.

Paperboy made redundant

According to the Sun newspaper in the UK, a 13 year old boy received a letter that he had been made redundant from his paper round. The official letter reminded Kane Middleton of his rights and outlined his redundancy package. Letterboxdirect, which hired Kane to deliver 100 newspapers in his village, said it had “fully assessed opportunities for redeployment within the company” but none were available.
Kane’s response? “I felt winded when I saw the letter. I know the job market is tough out there but I want to work….All that’s available for me now is car-washing and mowing lawns. Maybe dog walking if I’m lucky.”

Tax case and bad debt write-offs dent ANZ National’s profits

ANZ National announced that their underlying profit was down nearly a third for the year, due to one-off costs including provisions for a possible tax bill and the ING frozen funds offer (excluding provisions, the bank’s underlying profit rose by 8%).

Finsec Campaigns Director Tali Williams said that the bank’s customers and staff knew exactly how to interpret the bank’s profit announcement. “This is further evidence that even in the depths of the recession and with a potential huge tax liability, that ANZ National is still in a good position to invest in their Kiwi workforce.”

“Many businesses in New Zealand and around the world would envy ANZ National’s ability to make profits, even after providing for some massive one-off adjustments,” said Williams. “Finsec members know that this bank can still afford to make and keep commitments to their New Zealand workforce – to at least maintain their staffing numbers and to ensure that those staff are fairly rewarded for the contribution they make to keeping the bank successful.”

BNZ ratification wraps up next week – have your say!

The BNZ ratification meetings continue next week, with the process concluding on Friday.

The Gossip caught up with Union Councillor Annette Moore as she completed running ratification meetings around her region. “I’ve really enjoyed getting out of my own patch and talking with all the members in my region. The ratification meetings have provided a great opportunity for me to discuss lots of issues with Finsec members.”

Annette says she’s run into different moods and issues at the meetings she’s run in the last week. “As a member of your union bargaining team, it is really important we have a strong mandate of as many members as possible on the way forward.”

“The most important thing members can do in the next week is get out there and vote,” said Annette.

“Flexible” meal break change

The National government has introduced legislation to make meal and rest breaks more flexible, amending Labour legislation which set aside specific breaks and time for breastfeeding. This move has alarmed union members across the country.

Council of Trade Unions’ President Helen Kelly said, “These changes remove the absolutely fundamental right to minimum breaks at reasonably spaced periods during a working day. The changes proposed will enable employers to determine whether or not a worker should have a break and then how long and when it should occur.”

Your new ANZ National Union Council

Finsec members at ANZ National have a newly confirmed representative Union Council with a mix of experienced and new members. The ANZ team are Nola Macken (St Lukes Branch, Auckland), Graham Lee (Kumeu Branch), Juli Meiklejohn (Relationship Services, Auckland), Michelle Cubitt (Auckland), Lawrence Beach (ANZ Contact Centre, Wellington) and Kelly Smith (Whakatane Branch).

On the National side, are David Baker (Te Rapa Branch, Hamilton), Howden Gray (Terrace Branch, Wellington) and Cory Mackinnon (NBNZ Contact Centre, Wellington). An election is still to be held for the NBNZ Brand South Island Retail representative – candidates are Cathie Lendrum (Christchurch Branch) and Pamela Kaler (Dunedin Branch). Election material should arrive in the affected worksites early next week.

Howden Gray, one of the new Councillors, told the Gossip “It’s great to be elected and I’m looking forward to contributing to making better banks for everyone.” He also wants to be a part of getting some movement on staffing issues, as he says staffing numbers are still gradually reducing with the resulting negative impact on workload.

Can’t buy me love

A study of 800 men and women in the UK and US through a dating website, has found that a good sense of humour, confidence and a fit body are the defining attributes of sexiness.
But even in times of recession, it would appear that a ‘healthy income’ does not make you sexy, whether you’re British or American. This option received the least amount of votes from males and females in both countries.
While the Gossip applauds this non-materialistic approach to love, we report sadly that intelligence and an attractive face didn’t rate too highly either!