Bank workers not seeing record profits reflected in their wages

Bank workers in New Zealand have not received pay increases that are anywhere near commensurate with continued profits of the ‘Big Four’ (ANZ, ASB, BNZ, Westpac) over recent years, and banks must use upcoming national bargaining periods to demonstrate their commitment to their workers and reinvest in the communities that are making them so profitable, according to FIRST Union General Secretary Dennis Maga.

"Bank profits have not been reflected in workers’ pay, and banks have negotiated wage increases well below the rate of inflation in recent years, ignoring their continued profitability and the growing demands of their workers’ jobs," said Mr Maga.

"Now is the time for the big banks to give something back to New Zealand and show that over a billion and a half dollars of profit in the last quarter will not be leaving the country while their own workforce struggles to survive during a cost-of-living crisis."

Negotiations for new Collective Agreements have begun at Westpac, with bargaining due to begin at ASB mid-year and BNZ in October. Mr Maga said FIRST Union members at New Zealand’s major banks were seeking pay increases well above the rate of inflation alongside assurances about pay progression, leave entitlements, reducing unmanageable workloads and workplace stress

"These are difficult jobs that require various levels of financial expertise, quick response times and interaction with the public to meet their banking needs," said Mr Maga.

"Many bank workers have felt left behind while their employers have continued to make millions every quarter, and our delegates are determined to turn that around during upcoming bargaining."

FIRST Union has recently called for a five percent levy on excess bank profits over half a billion dollars, which would have returned around $300m of profit to New Zealanders and could be utilised to fund the establishment of a Ministry of Green Works. Analysis by FIRST Union of a decade’s worth of data shows that New Zealand banks’ returns on equity are among the highest of our standard comparator countries, and the union supported calls for an inquiry into bank profits.