A trade union says Westpac's pay offers have been disappointing. Photo / File
A trade union says Westpac's pay offers have been disappointing. Photo / File
Westpac workers will vote on strike action after a union said more than 95 per cent of members rejected a pay offer after four months of bargaining.
But Westpac said the unionised workers voting for a strike were a minority of its workforce, and it offered competitive pay and benefits.
Callum Francis, FIRST Union national finance organiser, said bank workers were “disappointed and offended” during negotiations with the bank and had now rejected an offer.
The union said pay increases were below the rate of inflation and well below their fair share of Westpac’s reported billion dollars in profit for the past financial year.
“Bank workers shouldn’t have to negotiate for four months for a pay rise that keeps up with the cost of living with one of the largest banks in the Australasian market, who are supposedly an industry leader and last year made over a billion dollars in profit,” Francis said.
“Since 2021, Westpac workers have received pay increases well below the rate of inflation while bank profits remained steady and executives and managers’ salaries continued to rise.”
The union said a vote on industrial action would be held in the coming days.
“It’s not common for bank workers in New Zealand to strike but they feel that their backs are against the wall after four frustrating months of negotiations and an insulting offer,” Francis added.
“We will support our Westpac members to seek significant pay rises that reflect the bank’s excessive profitability against the backdrop of a rising cost of living across the country.”
Westpac today said it was still open to constructive discussions with FIRST Union on a resolution.
“We are mindful of the increasing cost of living and the financial impact on our employees,” a Westpac spokesman said.
Westpac earlier this year said destruction from flooding events such as Cyclone Gabrielle here had dented profits. Photo / NZME
“Our offer is above the forecast inflation track over its full term.”
He said Westpac was conscious of the increasing cost of living.
“Our offer of a 7 per cent pay increase over 18 months is above the forecast inflation track, and on top of that we’re also offering a one-off cash payment.”
He said the bank believed its pay compared favourably to other employers in the financial services sector and included benefits for all employees.
Westpac said such benefits included one week of “wellbeing leave” on top of annual leave, discounted banking, competitive superannuation and subsidised health insurance.
“While we acknowledge union members have voted in favour of rejecting Westpac’s offer, this still represents a minority of our overall workforce.”
Asked if banks would close, Westpac only said it had plans in place across the business to minimise any disruption for customers in the event of a strike.
Westpac New Zealand reported a 33 per cent fall in net profit to $426 million for the six months to March, with damaging impacts from severe North Island island flooding blamed.
FIRST union said it represented 30,000 workers in the finance, textile and wood, retail, stores and transport sectors.
Bank worker strikers are rare in New Zealand.
Union members at ANZ and National banks walked off the job in 2008 after an impasse during collective agreement negotiations.
