Union set to fight banks' job cuts

It would be unacceptable for the major banks to sack workers just to boost profits, the Finance Sector Union says.

Cost cutting and efficiency improvements have been identified by analysts and investors as the most likely drivers of profit growth for the big four banks in the current subdued economic environment.

Businesses and consumers are borrowing less because of economic uncertainty, while the banks' costs of funding are set to rise because of Europe's debt crisis.

"In our experience whenever they mention the word costs all they do is focus on the staff costs," FSU national secretary Leon Carter told AAP on Monday.

Westpac has to date been the most open of the big banks about prospective job cuts, with chief executive Gail Kelly saying late last year that staff numbers were likely to trend downward.

But the bank says it has no concrete plans to cut staff numbers, a stance similarly held by its rivals.

The FSU is concerned that staff numbers are set to be downsized, and will be seeking more information during its regular new year meetings with the banks.

"There is an added urgency this year because unfortunately, despite the capacity to do so, none of them have come out and said 'we won't be sacking Australians in 2012'," Mr Carter said.

"Instead, what they let go is the endless speculation that workers are going to lose their jobs."

The union has also urged the federal government to intervene if staff numbers begin to fall.

Taxpayers supported the banks through the global financial crisis, and the banks therefore have an obligation to their workers and the community, Mr Carter said.

ANZ, Commonwealth, National Australia Bank and Westpac collectively made $24.2 billion in cash profits during fiscal 2011, an increase of 11.5 per cent on a year earlier.

They employ over 177,000 staff, with the ANZ the biggest employer.

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Source: http://finance.ninemsn.com.au/newsbusiness/aap/8400426/union-set-to-fight-banks-job-cuts

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