
Issue No 72		06 October 2000

LaborNET	Ask Neale	Tool of the Week

News

Alliance Builds Against Commonwealth Bank

Unions and consumer groups have joined forces in a national advertising and community action campaign against the former People's Bank.

The campaign encourages the Commonwealth Bank's 400,000 shareholders to speak out over the bank's excessive executive salaries and poor treatment of customers and staff.

The Finance Sector Union campaign is being backed by the Australian Consumers Association, Bankwatch, the Financial Services Consumer Policy Centre and the ACTU.

It kicked off last week with nation wide newspaper advertisements calling on Commonwealth Bank shareholders to show their concern with the bank's behaviour by attending the company's Annual General Meeting in October or issuing their proxy shareholder voting rights to the FSU.

FSU National Secretary Tony Beck says, "There are thousands of Commonwealth Bank shareholders out there who are appalled at the way their bank is treating its customers and staff. This campaign is about giving those concerns a voice."

The campaign involves a series of advertisements, lobbying of Federal and State politicians, campaigning with bank customers to gain support for minimum service standards, and protest activity inside and outside the company's AGM. Thousands of leaflets will also be distributed across the country calling on shareholders to support FSU's campaign for better bank service.

Louise Petschler, of the Australian Consumers Association says, "Consumers are getting a poor deal from the Commonwealth despite its record $1.7 billion profit. With increased fees, branch closures and chronic understaffing it is time for consumer concerns to be taken seriously. The ACA supports FSU's call for shareholders to tell the Commonwealth it has gone far enough. Profitability should not mean bad service."

Tony Beck says the Commonwealth has the worst record of all the major banks on deteriorating customer satisfaction, excessive executive salaries, staff relations and branch closures.

Consumer surveys reveal a sharp decline in customer satisfaction with the Commonwealth since 1997 making it the Australian bank with the lowest portion of customers who choose it because of good service. The Commonwealth has closed 438 branches in the past 5 years and has targeted a further 250 for closure.

At 20%, staff turnover is amongst the highest in the industry and already low staff morale has been shattered by the bank's recent decision to issue individual contracts to all its 22,000 Australian staff.

Despite its poor record on staff and customer issues, shareholders at this year's AGM will be asked to approve another $1 million of free shares and 250,000 share options for CEO David Murray. This comes on top of a 272% increase in Mr Murray's salary since 1994 pushing his pay above $2 million last year.

"These are issues not just for customers and staff of the Commonwealth Bank but also shareholders who care about the way their investment is being managed,' said Mr Beck.

ACTU President Sharan Burrow said she hoped shareholders would support the campaign. "Executive salaries rose by 22% in Australia last year. Ordinary Australian's, many of whom are shareholders in the Commonwealth Bank, want to see some balance restored to corporate behaviour. This campaign is a great opportunity for ordinary shareholders to have their say."

Commonwealth Bank shareholders interested in supporting the campaign are being encouraged to call a toll free advice line on 1300 366 378.

View entire issue - print all of the articles!

Issue 72 contents

Interview: Taking It To The Union Busters
ACTU Assistant Secretary Richard Marles talks to Workers Online about turning back the anti-union sentiment growing in the business community, responsible unionism and the sense of fun to be found at the ACTU.

International: The White Knights
The International Labour Organisation has become the great hope for those fighting to give globalisation a human face. Australian Bob Kyloh is one of those working with trade unions within the ILO to make it happen.

Politics: Industrial Democracy for Australia
Glenn Patmore argues we need new forms of employee representation in the workplace to broaden employee participation.

Unions: Behind The Scenes
In a small office at Homebush Bay, as the world focused on all that was positive about our games, Unions 2000 and SOCOG officials worked tirelessly to ensure that no worker was ripped off. Chris Christoudoulou reports.

Satire: Parade of Icons �Could Have Included Even More Ex-Aussies� Say Critics
The selection of Greg Norman, Paul Hogan and Elle Macpherson to represent Australia in the �Parade of Icons� during the Closing Ceremony of the Sydney Games last night has prompted a storm of complaints from other famous former Australians.

Review: Elliott Smiths Figure 8
Smith is basically the secret love child of the fab four and it�s so blatantly obvious. That�s not a bad thing because one thing Lennon and McCartney were reknown for was there ability to pen catchy tunes.

» Interstate Rail Workers Rebel Against AWAs

» Australia Post Exposes Staff to Bomb Danger

» Alliance Builds Against Commonwealth Bank

» Carr Lauds Union Movement For Golden Olympics

» Big Brother Unwelcome In Child Care Centres

» Council Workers Win Community Language Allowance

» Fiji Facing Dictatorship

» Home Care Win Recognises Community Contribution

» Pressures Mount on Truckies

» Industrial Action Looms At IBM Global

» In Your Face Provocateurs

» Putting A Stop To Workplace Intimidation

» Australian History To Be Buried Alive