Huge Profits Threaten Jobs
The big 4 banks had to hose down speculation this week, regarding fears of Jobs losses in the banking sector. Late 2011 Westpac’s Chief executive, Gail Kelly, fueled the rumor mill by saying staff numbers were likely to trend downward. But the bank defended that statement by announcing it has no concrete plans to cut staff numbers, a stance similarly held by its rivals.
It would be unacceptable for the major banks to sack workers just to boost profits, the Finance Sector Union told The Sydney Morning Herald January 9. The FSU are concerned about the endless speculation around the downsizing of the workforce in the banking sector and the union demand banks to ensure that they won’t be trimming jobs during 2012.
The bank argued 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. With a combined $24.2 billion cash profit made by the 4 major banks in 2011, an 11.5 per cent increase from the previous year.
There are questions which I’d like to ask the ANZ, Commonwealth, National Australia Bank and Westpac. Does the bank have to increase their profits? Is $6 billion (not million) enough profit? Why do you have to punish a percentage of your staff by sacking them when they have contributed to increase the bank’s profits?
The concerns about banks cutting staff numbers is queues would be longer, which will frustrate people such as the elderly, people with disabilities and other members of society who hadn’t embraced or are able to access internet banking. There would be a large number of people who prefer doing their banking with a friendly face, rather a computer screen.