Big bank accused of ‘heartless’ staff move as rate changes loom

Each of the big four banks have announced job cuts this year.

Westpac has been accused of delivering an early Christmas heartbreak to its frontline workers, slashing more than a hundred branch jobs just weeks out from the holidays.

And the move has come as hopes fade for another round of interest rate relief.

The Finance Sector Union (FSU) issued a release blasting the bank for what it called a “heartless and disrespectful” decision to cut 134 teller and personal banker roles across 99 branches nationwide.

The union noted that the cuts are coming less than two months before Christmas.

Westpac had earlier announced about 1,500 job cuts in May, coinciding with thousands of role cuts from other big four bank payrolls so far this year.

ANZ announced in August it was cutting 3,500 staff plus 1,000 contract roles over the coming year, while NAB earlier announced it was axing 400 jobs.

The cuts come as new inflation figures released Wednesday came in hotter than expected, all but killing off hopes of another interest rate cut this year.

The ABS figures showed annual inflation was above expectations at 3 per cent – largely due to soaring electricity prices reigniting cost pressures in the economy.

Hope of RBA governor Michele Bullock announcing a Melbourne Cup Day cut have largely vanished after higher than expected inflation figures were released. Picture: Martin Ollman

CBA has now revealed it expects no more rate cuts in the foreseeable future. NAB is expecting one more cash rate cut in May, while ANZ is expecting one last cut in February. Westpac forecasts are under review.

Westpac job cuts have followed similar moves from rival banks as they move more operations online.

Westpac retail banking general manager Damien Macrae commented last month that it would be offsetting losses in retail banking staff with investments in other business units.

But the FSU said the timing could not be worse and accused the bank of abandoning workers.

Finance Sector Union national president Wendy Street said Westpac had “jumped the gun” on job cuts despite promising only last month to invest $5m into a new “capability fund” for upskilling retail staff.

“These are tellers and personal bankers who have stood by customers during a difficult few years,” Ms Streets said. “They deserve respect, consultation and the time to make real decisions about their future, without being rushed out the door.”

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The Finance Sector Union had earlier rallied against ANZ job cuts, with the group’s national secretary Julia Angrisano commenting in September that cuts would impact services.

“You can’t cut 3,500 employees (14 per cent of the ANZ workforce) and expect there not to be any impact on services and customers,” she said at the time.

The FSU is calling on Westpac to delay job losses until after Christmas and consider options for redeployment or voluntary redundancy.

“Westpac has a choice,” Ms Street said. “It can pause these cuts and treat its people with fairness and decency and work with us to find solutions — or it can prove that it’s choosing the path of chaos and putting profits over people.”

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FSU national secretary Julia Angrisano had slammed previous cuts announced by ANZ. Picture: Hollie Adams

VanEck’s head of investments and capital markets Russel Chesler said the RBA’s “next move could be a rate increase if inflation doesn’t change course”.

Property economist Andrew Wilson said pressure on banks to deliver lower rates could diminish due to growing economic uncertainty.

He warned that the risk of the RBA reversing one of this year’s earlier cuts “cannot be ruled out” if inflation stays sticky.

“There’s no clear environment for business or inflation right now. It’s all in flux,” Mr Wilson said.

“Maybe the RBA was one rate cut ahead of the cycle this year. If inflation doesn’t settle, they may have to give one back.”

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