Union slams Westpac's Asgard job cuts


The Financial Sector Union has slammed Westpac after the bank said it would lay off 120 workers at its asset management subsidiary in Perth.

The bank told the union on Friday that 120 positions at its wholly-owned subsidiary, Asgard, would be shifted to Sydney and India.

“This decision, dressed up in the language of a strategic review by Westpac, is all about cutting jobs in Perth and sending some of the work overseas and some to Sydney for no other reason than to boost profit,” said FSU national secretary Leon Carter.


“And this is at a time when Westpac is experiencing record profitability and hinting that it will lift home loan interest rates above RBA movements,” said Mr Carter.

Australia's banks are widely expected to lift their mortgage rates in coming months to claw back profits eroded by higher global funding costs since the emergence of the financial crisis. Asgard provides the investment platform for 400,000 customers, with $37 billion under management.

"These changes will ensure we are best positioned to meet adviser needs into the future through a high service model that takes advantage of scale benefits and improved resourcing," said Asgard's customer service general manager Gai McGrath.

"This means more online services, faster processing times, higher quality and more time for our Perth customer service team to add value to their interactions with Asgard’s customers."

Asgard said 30 to 40 positions would be going to India under an existing arrangement with an outsourcing company but employees will be offered a chance to take different jobs within Perth or other interstate positions.

After the cuts, 270 employees will remain in Perth.

Westpac which currently has a freeze on sending jobs overseas, recently flagged the possibility of reviewing the policy in coming months, as the local labour market remains tight. Westpac also warned it would cut thousands of head office and administration positions over the next two years to trim costs. The bank, which employs 37,000 people, posted third quarter earnings of $1.4 billion.

“Banks have a responsibility to ensure that staff and customers are not always being put second to the interests of higher profit and higher executive remuneration,” said Mr Carter.

“The workers at Asgard in Perth have been loyal and productive employees contributing to these record profits. Yet their reward is to lose their job.”

Western Australia FSU state secretary Di Marshall said she understood one-third of the jobs to be cut would be shifted to India.

Well, to get bigger profits either to move there or get people there to come here to do the job .. Just look at The US now , they are printing the money and this is no solution unless they bring back home the industries ..

People in Australia have a right to belong to a union, and a right to go on strike if need be.   A lot of  businesses  decide to get the work done overseas, even though they don't have to, in order to increase their profits even more, and don't think much about their workers.

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If your attitude is typical of workers, the bosses are right in their opinion of workers.