The Commonwealth Bank (CBA) will increase retail banking staff referral targets by 10 per cent in the view that more referrals will enable its wealth arm and other business partners to achieve an increased target this year, according to the Finance Sector Union (FSU).
At the same time, the bank acknowledged that the market is not growing and it expects lower lending levels this year.
Following member concerns, the FSU met with CBA retail bank executives to request an explanation as to how the bank can insist staff achieve a 10 per cent increase in targets for 2009-10 in what the bank admits is a shrinking market.
The CBA responded by saying it has provided its staff with more opportunities, therefore, it will be easier to achieve an increased target, a FSU statement said.
The FSU said the CBA believes if staff sell a wider range of products, it will enable them to achieve more, regardless of what is happening in the market.
However, FSU national director, policy and communications, Rod Masson said although referrals to the wealth arm would be a good thing, given a slowing market and less opportunities, “It’s questionable as to whether these referrals will be able to be sourced and … whether any of those referrals can actually be converted”.
The FSU claims one member alerted the union to a 15 per cent increase in agribusiness targets in an area that has been drought declared for years.
FSU members have found the CBA’s response to be unacceptable and have agreed to continue to challenge the unfair targets.
