Finance Sector Union calls out cost cutting at CBA over plans to send tech jobs offshore
The Finance Sector Union has accused Commonwealth Bank of misleading staff about offshoring jobs after the Fair Work Commission revealed roles were being relocated to India.
The Finance Sector Union has blasted Commonwealth Bank, saying the lender’s assurances it was not offshoring staff had been unmasked as false in the Fair Work Commission.
The FSU, which represents workers in the banking sector, said CBA had been forced to admit at least two jobs set to go in its latest redundancy round were being duplicated in its Indian operations, despite earlier denials.
CBA told staff in June it was not offshoring roles after announcing plans to make 283 workers in the bank’s technology and retail teams redundant.
This came at the same time CBA advertised a bundle of new jobs for its Indian operation, many of which reflected similar or the same responsibilities of the Australian staff who were set to lose their jobs.
In a judgment last week, the Fair Work Commission found CBA had submitted the roles it was creating in India were “different” to the roles set to go in Australia. But commissioner Katrina Harper-Greenwell found CBA had identified at least two of the 283 roles set to go would be performed at its Indian operation and were not new jobs.
In its response to staff, CBA said the 283 jobs set to go reflected a centralisation and restructure of its teams in Australia.
A detailed rationale shows CBA plans to amalgamate several roles. Among the plans CBA said it intended to combine the work of four staff in the bank’s product team in Australia into just two in India.
A further 18 engineering manager roles will go in Australia, with 23 new Indian roles to be created in response. The bank said the new roles “reflect full-stack engineering capability requirements”.
In its note to staff, CBA noted its “regret not having identified sooner that two Product Owner roles are being relocated to India as part of these changes”.
But a CBA spokesman said in June the bank provided a “rationale that these two roles were no longer required”.
“This information was provided to the FWC and the FSU. The review has been completed and has been resolved. This is reflected in a memorandum from the FWC to the FSU and CBA,” he said.
FSU national secretary Julia Angrisano said CBA was being opaque in its approach to restructuring of roles, warning the bank was displacing Australian jobs in favour of cheaper Indian labour.
“This is all about cost cutting,” she said.
Ms Angrisano said CBA chief executive Matt Comyn often spoke publicly about the need to build technology skills in Australia, but also backed a push by the bank to cut local roles delivering those services.
“Our members are really concerned with the use of offshoring because it means fewer opportunities for them,” she said.
Ms Angrisano said CBA was paying its Indian staff as little as a third or one quarter the equivalent wages it paid its Australian staff for the same jobs.
CBA reported a $10.2bn profit after tax in August. The bank announced it had 55,850 staff as at 30 June. CBA has been boosting its Indian operation over recent years, with staff count in Bengaluru – formerly known as Bangalore – lifting from 5630 in 2022 to 6788 at last count.
The FSU said after it alerted CBA that it was aware the bank had advertised a trove of new jobs in its Indian operation, which appeared to be direct replacements for the Australian staff set to go, the bank pulled down 30 of the listings.
“This is about accountability; Australia’s largest bank cannot quietly ship jobs offshore while telling staff and customers otherwise,” Ms Angrisano said.
The FSU has dragged CBA to the Fair Work Commission on several occasions over its attempts to make staff redundant, including 45 who it expected to replace with AI technology. But Ms Angrisano said the FSU was limited in how far it could take its action against CBA, warning the bank had limited powers to arbitrate through its enterprise bargaining agreement with staff.
This is the case across most banks in Australia.
“These consultation clauses are no longer fit for purpose,” Ms Angrisano said.
She said a review was needed by the Albanese government of the laws governing employee agreements, warning current clauses requiring companies to consult with staff were not working.
“It speaks to a fundamental issue with the current consultation provisions in an industry where there is so much change happening so quickly and where we know technology is bringing around rapid change,” Ms Angrisano said.
CBA has built deep relationships with the Labor government, with Mr Comyn often speaking with Treasurer Jim Chalmers.
Dr Chalmers was contacted for comment.
Westpac has avoided triggering its consultation clause with staff as part of plans by CEO Anthony Miller to cut as many as 2500 staff.
ANZ is also preparing to clash with the FSU in the Fair Work Commission over its plans to eliminate 3500 staff, with the union in uproar over its refusal to tell staff who will lose their jobs.
Ms Angrisano said she was concerned ANZ would look to relocate staff to its burgeoning Indian operation.
More Coverage
Originally published as Finance Sector Union calls out cost cutting at CBA over plans to send tech jobs offshore
Global nuclear giant buys Qld engineering firm
