News

UNI Finance Policy Officer Elise Buckle met with Union Solidarity International (USI) this week and discussed how banks can be made to serve society and rights of bank workers



Watch the video interview here

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Background



See full article on USI website here



Excerpt:



“Despite banks making massive profits, and paying out large bonuses at the top, in pursuit of short-term profitability banks have slashed at least 300,000 jobs since the start of the financial crisis. For instance, HSBC made almost 22 billion dollars of profit in 2011, but decided to cut 30,000 jobs, while Deutsche Bank made 7 billion dollars of profit but lost 22,000 jobs.

Banks making profits but cutting thousands of jobs… How is this possible?

· Banks are setting unrealistic targets, aiming for 15 to 20% of Return on Equity, while it used to be around 8% in the 1950s and 60s.

· As a result, profits are growing at grossly excessive levels, triggering generous bonuses and pays for a few greedy top managers.

· But at the same time, it is adding pressure on businesses to reduce labour costs and cut jobs. Ordinary people and banks workers at all levels are paying the price of the financial crisis.

· Higher Rates of Return on Equity means more profit but also more pressure on labour costs.

That also means employees are forced to sell more financial products even if it is not in the interest of customers, and employers tend to off-shore many jobs to lower-paying countries.”