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Banks Should Opt For Deposit Guarantee -- Time To Suspend Targets And Protect Jobs

Fuseworks Media
Fuseworks Media

13 October 2008 - Bank workers' union Finsec says that all our major banks should immediately sign up to the government's plan to guarantee bank deposits.

"Our banks are in a strong position with good profits," said Finsec Campaigns Director Andrew Campbell. "They should reinforce this position by agreeing to Labour's plans announced yesterday. This would give customers greater certainty about the security of their deposits."

Finsec is also calling on the banks to take two additional steps to ensure economic stability; a suspension of sales targets for bank staff and retention of existing staffing levels.

"It is unbelievable that in the midst of this crisis, some banks have made moves to actually increase sales targets for staff to sell products, including debt products."

"Now is the time to suspend or significantly reduce sales targets to ensure that customers are not getting into debt they may not need or be able to afford, especially if this recession deepens. Our major banks need to seriously rethink the system of sales targets in response to the global credit crisis."

Finsec is also calling on the banks to ensure the protection of jobs in the sector. "The big banks are some of our largest and most profitable employers. With the added protection of the government's deposit guarantees, there should be no reason to cut any more jobs from the finance industry."

Campbell said that the banks should return the trust given by the New Zealand government and their Kiwi customers and retain good stable jobs in this country. "Large companies that can afford to should be making commitments to job security. Employment stability at this time is in the interest of the banks themselves, their staff and customers and the wider economy," he said.

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