The Finance Sector Union is questioning the wisdom of Westpac’s decision to outsource and offshore technology jobs, calling it a short-term cost-cutting measure that won’t add up in the long run.

“We’ve been here before, Westpac previously outsourced Adelaide based technology jobs to HP but has bought the jobs and functions back in-house because in the long run that decision didn’t actually reduce the bank’s costs,” said FSU National Secretary Leon Carter.

Following last week’s announcement of the biggest ever profit achieved by an Australian bank, Westpac has announced changes in the bank’s Technology division that will result in 188 IT jobs in Sydney and Adelaide being slashed.

The job cuts mean that a number of IT functions will no longer be handled by Westpac, and will instead be provided by outside companies both in Australia and offshore.

The cuts are part of an 18 month long program of reducing Westpac roles and replacing those roles with outsourced and offshore providers.

“There is no justification for any Australian bank to slash jobs. With a combined profit of more than $24 billion this year, if anyone can afford to invest in Australian finance jobs it is our four big banks, particularly the most profitable bank, Westpac,” said FSU National Secretary Leon Carter.

“For any major bank to slash jobs at the moment is a complete abrogation of the banking sector’s responsibility to the community that they profit from. Those profits should be devoted to developing skills and investing in jobs here in Australia.”

The union will keep pressure on the bank to ensure the affected workers are provided with redeployment opportunities within Westpac, rather than losing their job.

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Spokesperson: Leon Carter 0409 946 597

Media: Leanne Shingles 0423 821 773