The finance sector union
2 November 2006
Westpac’s decreased profit shows its business model is flawed
Finsec, the bank workers’ union, is calling on Westpac to change its business model in light of its decline in
profitability in New Zealand. Westpac announced a decrease in its annual profit today.
“Westpac has operated an old fashioned business model that alienated its customers and shows in its financial
performance,” said Finsec Campaigns Director, Andrew Campbell.
“Of all the banks operating in New Zealand Westpac invests the least to make a dollar. Its cost to income ratio is
significantly lower than the other banks and we see this as a failure to invest in its business that is denting its
profitability,” said Campbell.
“The Westpac model of cutting cost, outsourcing work and driving staff to sell more and more products to customers has
not increased its profit and is disliked by customers. Westpac regularly has the lowest customer satisfaction scores in
the industry and we believe this is in response to the business model they are following,” said Campbell.
“Last week ANZ bank announced an increased profit on the back of increased investment in its business. We are calling on
Westpac to further change its business model because the model doesn’t work for customers, staff or the business,” said
“We want to see the bank make significant investment in its customers. This means investing in staff training, reducing
staff turnover and putting more money into its front line services,” said Campbell.
“Westpac staff want to see the company do well, but this will mean changes to how it currently operates. Now that
Westpac is a New Zealand bank, it should do business in a way that benefits New Zealanders more,” said Campbell
Putting Workers First
FIRST Union is New Zealand's second-largest private sector trade union.
Formed in 2011 after the merger between the National Distribution Union and Finsec, FIRST Union represents 27,000
workers in the Finance, Industrial (Textile and Wood), Retail, Stores, Transport and Logistics sectors.
FIRST Union is also affiliated to the New Zealand Council of Trade Unions and runs several networks including the Union
Network of Migrants, the Runanga, Fono and Womens' Committee. In 2015 FIRST Union launched Samoa First Union, Samoa's
only private sector union.
Join FIRST Union today for higher pay, better conditions and more say at work.