The campaign to save BankSA from the Westpac takeover continues apace with thousands of people signing the No takeover petition, Westpac doing an advertising blitz and rumours that the St George Board are getting cold feet about the deal.
Westpac Goes on the Defensive
Westpac's full page ads in the newspapers over the last week indicate the red w is getting worried about it's proposed takeover being rejected by Aussie consumers.
Westpac's ad says that they will retain branches from both banks and that customers can be assured that "the wonderful employees from both St George and Westpac, whom you know and deal with day-today, won't change."
It's the same kind of thing Westpac said when they took over Bank of Melbourne and Challenge Bank. So why should we believe it now?
What About Me...?
What's missing from the ads is any commitment to the "wonderful" employees of St George/BankSA and Westpac who work in non-customer facing roles.
The Westpac CEO asks people to contact her at gailkellyCEO@westpac.com.au to share your thoughts.
We propose that you ask her:
- Is Westpac prepared to make a legally binding commitment not to close any existing St George/BankSA or Westpac branches?
- Does this mean that Westpac will ensure that roles with customer contact, such as Collections, will not be offshored?
- Will Westpac guarantee to maintain the St George/BankSA Enterprise Agreement?
Send a copy of your emails to fsuinfo@fsunion.org.au
St George/BankSA Board Having Second Thoughts?
There are reports of St George having second thoughts about the Westpac merger bid. The Australian Financial Review of last week included the following:
"The persistent drop in Westpac's share price over past weeks has raised an obvious question in the minds of St George shareholders: at what point will St George Chairman John Curtis and his fellow directors reverse their hasty decision to accept Westpac's offer or return to the negotiating table to hammer out a new deal?
"At the very least, there is thought to be a growing push in St George's senior management for the board to reconsider its recommendation in light of the falling share price."
ACCC Submission
The FSU along with other anti-takeover groups such as Choice has lodged a submission to the Australian Competition and Consumer Commission’s (ACCC) inquiry into Westpac’s merger application.
In summary, the FSU submission opposed the merger on the basis that:
- It will remove an effective and vigorous competitor from the market;
- Barriers to entry make it unlikely that a new ‘effective and vigorous’ competitor will emerge to replace St George;
- A substantial lessening of competition will occur in the markets for transaction accounts;
- It will result in substantial employment losses;
- There will be an increased likelihood of less competition in the banking sector through the four major banks launching takeovers for the remaining smaller players.
Lobbying, Lobbying, Lobbying
The FSU and other groups against the takeover continue lobbying efforts.
FSU officials met with the Federal Treasurer, Wayne Swan recently in Canberra and re-iterated our opposition to the takeover based on the loss of jobs and the reduced competition that would result if the takeover went ahead.
Mr. Swan listened carefully to the FSU arguments and also expressed interest in our concerns about offshoring activities in the finance sector.
Wayne Swan has the final say on whether the proposed merger can go ahead. While the ACCC looks at the impact on competition the Treasurer applies a national interest test which considers the broader implications of the proposed takeover on the industry and economy.
Things to do to Save BankSA
There’s a number of things you can do:
- Letters: Write a letter to your local Federal Member of Parliament – there’s a sample letter on the www.savebanksa.org.au website.
- Petition: Print out the attached Stop the Takeover Petition and pass it around your friends, family and other networks - we are aiming for 5,000 signatures and so far have around 2,000, so all the signatures help. You can also sign the petition online – and then email it to a friend.