One has to marvel at the intransigence of Australian banks. With more than 1 million Australian households projected to experience some form of mortgage stress by December this year, and both the Reserve Bank and the Federal Treasurer calling for a cut in interest rates, our leading financial institutions are fixed in their view that to succeed you must put profit before people.

The Consumer Action Law Centres around the country trot out disaffected customers, carrying far more debt than they can manage, researchers attack the blatant marketing used by banks and margin lenders to attract custom, and the Australian banking workforce continues to struggle under the weight of unrealistic sales targets.

The FSU believes this is an issue that has serious implications for the health of our society and the wellbeing of our members, and the union has been representing members in this critical public debate, ensuring the voice of finance workers is heard.

The FSU Charter of Responsible Lending, designed to protect both consumers and workers, has been provided to the leaders of all Australian banks and they’ve been urged to adopt it. Your union has met with the Australian Bankers Association on the issue of debt stress, and has briefed MPs, Cabinet Ministers and the Office of the Treasurer.

In some areas of the country, such as the NSW Central Coast, FSU members are engaged in community campaigns to reduce the level of debt stress in their local communities.

Australian banks can’t continue to ignore this issue, and retain their image as responsible corporate citizens. And there are some simple steps that can be taken in the interest of their staff and their customers.

Primarily, FSU wants to see the link between sales targets and across the board pay increases removed from our landscape. St George Bank, having gone down the track of performance based pay, rejected it in favour of across the board pay increases, but retained sales targets for its workforce. And we need look no further than across the Tasman Sea to see what can be achieved.

Members of FSU’s sister union Finsec have voted in favour of an historic collective agreement settlement with Westpac that includes a new competency based pay system that removes debt sales targets being linked to pay increases and a 5% wage increase.

If it’s good enough for New Zealand bank workers, it’s good enough for us. FSU has listened to members and put a claim on Westpac in Australia to take the lead, and drop the performance based pay system in favour of across the board pay rises that aren’t dependent on sales.

We’ll keep taking the fight to the banks. In the meantime, let us know what you think.

Related: Link to Fujitsu Australia Report: Anatomy of Australian Mortgage Stress
https://www-s.fujitsu.com/au/whitepapers/form_anatomy_08.html