Archive for the 'Outsourcing' Category

The Shawshank Offshoring

Offshoring of bank work took a ridiculous new turn this week when it was revealed that bank processing work for the Royal Bank of Scotland and Goldman Sachs will undertaken by inmates at Charalapally Central Jail, imprisoned for crimes ranging from petty theft to rape. The move is raising major questions about security.
The prisoners will earn 5000 rupees or around $120 per month, about a third of starting salaries at other data centres in the Hyderabad region. Radiant Info Systems spokesperson CN Gopinath Reddy said once they become experienced in the work, prisoners will have a whole new world of opportunity waiting for them after their release.


ANZ’s new Manila Hub may cost Kiwi jobs

New Zealand bank jobs could be at risk again following ANZ’s announcement this week that it will open a new processing centre in Manila, expecting 300 employees to be based there by the end of 2010. ANZ have indicated that some of these jobs may be cut from its Australian and New Zealand operations.
“Our concern is that ANZ are looking at increasing their already excessive profit margin by seeking to employ cheaper labour at the expense of Australian and Kiwi jobs,” said Finsec Campaigns Director Tali Williams. “This is outrageous coming from a corporation that made $253 million in the December 2009 quarter alone.”
The bank issued a statement saying that Finsec was scaremongering over jobs, but Williams said that the bank could reassure staff about their job security by committing publicly to retaining jobs in New Zealand. “They have told our sister union in Australia, the FSU, that up to 100 Australian and NZ jobs will be lost to the hub. We are seeking firm commitments from the bank that jobs will not be lost as a result of this move.”
Check out media coverage on this issue at the links below:

Bank admits offshoring a failure

Finsec’s sister union lthe Finance Sector Union of Australia (FSU)  said last week that a Westpac subsidiary bringing back jobs from India to Australia is clear evidence that offshoring doesn’t work. Bank of South Australia, wholly-owned by Westpac, is returning eight credit card positions from India to Adelaide.

“The FSU congratulates Westpac for recognizing that off-shoring is a failed strategy, and that customers expect their bank to employ Australians in Australia,” said National Secretary Leon Carter. “Eight jobs is a start. But the banks’ employees and customers expect all off-shored jobs to come home.”

Carter said the move would delight customers. A recent poll conducted for Senator Nick Xenophon and the FSU showed that ninety one per cent of those polled would prefer to bank with an institution that keeps jobs and data in Australia.

Finsec and Westpac agree on protecting jobs

Westpac and Finsec issued a joint statement last week to mark the ratification of a new collective agreement that protects local jobs and not off-shore for the next twelve months.

“Westpac is committed to treating our workforce fairly, and a big part of that is committing to keeping jobs in New Zealand,’ said Christine Parker, Westpac New Zealand’s GM People. “We’ve also agreed to endeavour to preserve the overall number of jobs in our organisation. We’re proud of that commitment,”

Michael Wood, National Organiser from Finsec, said the results showed the benefits of collective bargaining. “By working together, Finsec members at Westpac have improved their job security, and achieved a reasonable pay increase of 2.25%, despite the difficult economic climate,” he said.

See some media coverage of the deal at the link below:

Union member victory at ANZ National

Finsec has negotiated a major financial support package for staff who lose their job as a result of offshoring in ANZ National bank.

Up to $10,000 will be made available per person to fund training courses and a grant of up to $15,000 will be available per person in a hardship fund for ex staff members who are struggling to make ends meet.  The hardship fund is open to any staff member made redundant, not just those who lose their job as a result of offfshoring.

Union representatives from sites affected by offshoring put the idea of a training fund to the bank in February. Our union and the bank have negotiated this deal over recent months

Finsec General Secretary Andrew Casidy said that our union’s number number one goal is to keep union members in jobs but where this is not possible it is critical that staff are supported in training and can still pay the bills.

BNZ told – don’t offshore jobs

BNZ Union Councillors met with the bank this week and delivered a strong message on behalf of union members – that the BNZ should not offshore New Zealand jobs.

The meeting was one of the quarterly opportunities Finsec representatives have to present issues to the bank on behalf of BNZ union members.

Finsec representatives put forward a number of recommendations to the bank including asking the BNZ to pledge not to offshore jobs, to maintain current staffing levels and guarantee any restructured staff an alternative role within the bank.

Senior management present at the meeting agreed to take members recommendations to the CEO and report his response back to us.

Finsec petitioning Government to protect jobs through conditions on bank guarantee schemes

Finsec has launched a public petition calling on the government to protect New Zealand workers from job losses by making job security a condition of its retail deposit and wholesale guarantee schemes.

“Last year the major banks recorded profits in excess of $2.5 billion dollars. They now have major tax payer support through the retail deposit and wholesale borrowing guarantee schemes. The least they can do in return is keep their staff in work rather than contributing further to the dole queue,” said Finsec Campaigns Director Andrew Campbell.

The call for job protection comes in the wake of revelations that ANZ National has redeployed into other bank roles only 58 staff out of 378 affected by offshoring of work from New Zealand to India. At the time of the announcement ANZ National said a job would be provided to anyone who wanted one.

“The banks cannot be trusted to keep New Zealanders in jobs. ANZ National has proven itself incapable of living up to its promise to keep Kiwis in work. Government intervention is urgently needed to keep the banks honest and keep local staff in work,” said Campbell.

Media coverage of the Finsec petition can be found at the following links:

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