Union flags banking branch closure and redundancy concerns

Suncorp’s $4.9bn bank sale to ANZ could lead to more redundancies and further branch closures despite promises of a multi-billion dollar boon to the Queensland economy.

Suncorp’s $4.9bn bank sale to ANZ has been sold as a boon for the Queensland economy in the lead-up to a cash-strapped Olympics, but there are growing concerns redundancies and further branch closures could follow the deal.

While senior Suncorp executives will reportedly now be in line for generous bonuses following the sale, insiders say cost-cutting will soon hit home.

Suncorp chief executive Steve Johnston has long wanted to jettison the bank so Suncorp could concentrate on its more lucrative insurance business.

Suncorp insiders fear the sale will lead to a wave of sackings as fewer group level positions will be needed in what will be a stand-alone insurance operation. “Redundancies are incoming,” said one staffer.

Last year, Suncorp jettisoned about 24 management roles as it prepared for the bank sale.

Other staffers were relieved the deal had finally been cleared after almost two years.

“If the bank doesn’t sell we are pretty f..ked aren’t we?” said one staffer before the deal was approved. Another said: “I am really looking forward to seeing the outcome of this bank sale so that we can all move on.”

Finance Sector Union national president Wendy Streets said she was worried the deal would cause more job losses and branch closures. “Bank workers understand that talk of ‘efficiencies’ is code for job losses in the longer term,” she said.

The Australian Competition Authority has authorised the $4.9 acquisition of Suncorp bank by ANZ Bank. Picture: Dan Peled / NCA NewsWire

Ms Streets said that while Suncorp retail staff had been given three-year job security commitments, the FSU was calling on ANZ chief executive Shayne Elliott to match those job guarantees for ANZ staff. “Unless ANZ offers its own staff job guarantees, there is nothing to stop the merged bank from shutting down more ANZ branches in locations where both brands have a presence,” she said.

She said the big four banks already had too much power and further concentration would remove a significant competitor from the banking sector. “The continual erosion of competition is bad for consumers and bad for jobs,” Ms Streets said.

Queensland Treasurer Cameron Dick described the takeover as a “great day for Queensland”.

Suncorp has undertaken to keep the bulk of its insurance workers in Queensland for at least the next decade. ANZ will inject $15bn of new lending to support “green” Olympic Games infrastructure and renewables projects.

“What this deal means is more jobs for Queenslanders,” said Mr Dick, adding ANZ had promised to build a new tech hub in southeast Queensland employing 700. “It’s also great news for the north of Queensland with Suncorp committing to a disaster resilience centre of excellence and also a northern hub for Suncorp insurance that will employ 120 people.”

Mr Dick said the state government will move legislation to allow the deal to proceed if federal Treasurer Jim Chalmers endorses the takeover.

Queensland’s shadow treasurer David Janetzki said it was important the Suncorp brand remained focused on Queensland despite the sale of the bank to ANZ.

“Whatever happens in the months ahead, we must keep the “sun” in Suncorp,” said Mr Janetzki. He added that Mr Dick must guarantee that during the current housing crisis, Queenslanders would “not be worse-off under a big bank buy-out.”

Originally published as Union flags banking branch closure and redundancy concerns