The Finance Sector Union (FSU) has slammed the Commonwealth Bank of Australia (CBA) for its pressure on staff, and says its members are still under threat of being performance managed despite the Banking Royal Commission and public scrutiny.
A CBA executive has told the Banking Royal Commission that the bank failed to act in the best interests of its customers in relation to the sale of credit insurance.
CBA general manager of retail products, Clive Van Horen, told Commissioner Hayne that 64,000 credit card insurance policies had been sold to pensioners, students and unemployed people, which was a breach of CBA’s obligation to act honestly, efficiently and fairly as only employed persons could claim on the insurance policies.
He said the bank pushed sales by offering staff members bonus awards.
FSU national secretary, Julia Angrisano, said this reflected a “toxic sales culture” that permeated down from remuneration structures of the CEO and senior executives.
“Pay models and incentives linked to the sales of financial products is pushed by management in every customer interaction,” said Angrisano. “The employment of CBA bank workers is subject to meeting targets.”
“Many of our members have expressed the concern they feel as they are required to either sell inappropriate products to customers, who they know doesn’t need or can’t afford them, or alternately, jeopardise their employment by failing to meet these targets.”