The Finance Sector Union today welcomed Labor’s proposed reforms to credit products and services as a step in the right direction that will benefit consumers; however the reforms will not relieve the enormous pressure on finance workers, to sell credit products.

“Customers know that every time they walk into a bank they are bombarded with offers of more products, predominantly credit products. Not because the customer needs more credit. But because the bank penalises the bank worker if they don’t meet their sales targets,” said FSU National Secretary Leon Carter.

“The penalty can be enduring a rigorous performance management process, missing out on the next pay increase, or in extreme circumstances it could mean losing your job.”

“Labor’s policy is on the right track, in that it seeks to protect consumers from avaricious fees and charges, but it misses the mark by not addressing the heart of the matter – the high availability of credit, and the continuous suggestion that you need more of it,” said Leon Carter.

“The Labor Government has listened to the community and sought to increase regulation in certain areas but we believe it is also critical to address the links between bank and finance workers’ remuneration and sales targets on credit products.

“With the levels of debt stress in the community at record highs we need to see the Government focused on greater regulation that values professional services over sales volumes in the finance sector,” Leon Carter said.

The FSU’s Better Banking Charter calls for:

Commitment from Government and banks to stop offshoring jobs and invest in developing skills in the Australian financial sector. (90% of public support and 93% workers support)

Government regulation to prohibit or significantly limit the extent to which performance can be measured by sales targets linked to selling debt products in the finance sector. (79% of public support and 90% of workers support)

Regulatory requirement for banks to demonstrate a direct link between their fees and charges and customer service provision. (82% of public support and 82% of workers support)

“The community, our financial sector and our economy would be much better off with the implementation of these reforms to create better banking for everyone.

This election finance workers, like the rest of the community, have a choice. As their union we are fighting for their rights at work and are also working with them to gain commitments from all candidates for a better banking agenda. Better banking is about a better deal for all Australian consumers and commitments to allow bank workers to work in an industry that values their skills,” said Mr Carter.