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Banks Urged To Be Flexible When Helping Public Service Workers Facing Financial Stress

Published: Mon 6 May 2024 01:00 PM
The PSA is encouraging banks to be flexible and lenient when dealing with the many public service workers facing financial stress following the unprecedented and rapid layoffs now underway.
Government ordered spending cuts could see several thousand of public service workers lose their jobs across the sector over coming months.
"This is a time for banks to step up and do the right thing by their public service customers," said Kerry Davies, National Secretary for the Public Service Association for Te Pūkenga Here Tikanga Mahi.
The PSA has today written to the New Zealand Banking Association urging banks to be receptive to the plight of many public service workers.
Banks should consider helping those struggling because of loss of income with a more flexible approach such as offering interest holidays and interest only periods with no penalty.
"These job losses are unprecedented both in scale and speed. We urge all banks to be mindful of the huge pressures this may place on some public service workers at a time of the sharply rising cost of living. including higher mortgage rates.
"Public service workers are not alone in facing financial challenges right now. But rarely in recent times has this country seen so many workers laid off around the country and over a short time frame.
"The slowing economy and tightening labour market will create a perfect storm for some people.
"The PSA is seeking the Bankers Association’s support on behalf of our members and asks it to issue guidance to banks about taking the cuts into account when dealing fairly and in good faith with affected people," said Davies.

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