The Commonwealth Bank has recently come under fire, with accusations of effectively abandoning its West Australian subsidiary, Bankwest. This criticism arises after the announcement that no new employees will be hired under the Bankwest brand.
The Financial Sector Union (FSU) has raised concerns regarding CBA's intentions to merge the Bankwest enterprise agreement with that of its national workforce. They caution that this merger could jeopardize the working conditions for approximately 1,400 staff members.
This development follows the significant decision made in 2024 to close all Bankwest branches and ATMs, transitioning the bank’s offerings to an online-only model. This shift was prompted by a noticeable decline in in-person transactions, particularly in the regional areas of Western Australia, resulting in the closure of 45 physical branches.
The FSU argues that this latest action by CBA undermines the fundamental right of workers to negotiate collectively, which is essential for them to have a genuine influence on their employment terms.
CBA’s actions are viewed as a step towards dissolving Bankwest as a distinct employer. Wendy Streets, the national president of the FSU, stated, "CBA is essentially calling it quits on Bankwest by making this the end of Bankwest as an employing entity. They want to erase the Bankwest brand, but our members have worked diligently to safeguard Bankwest’s unique culture and identity in WA."
Streets further emphasized that this situation would force around 1,400 Bankwest employees to negotiate alongside over 33,000 workers from the Commonwealth Bank, creating a disparity that lacks fairness.
"This is not merely an internal reorganization; it raises critical questions about whether Bankwest employees will maintain a true democratic voice regarding their own agreements, pay, and working conditions, or if they will simply become part of a larger workforce where their needs may be overlooked," she added.
It's worth noting that Commonwealth Bank acquired Bankwest in 2008 from the Bank of Scotland, which had previously purchased it from the Western Australian government in 1995. The original intention was to list 49% of its shares on the Australian Stock Exchange, although it eventually reclaimed those shares in 2001.
Bankwest’s history dates back to 1895 when it was established as the Agricultural Bank of WA, focusing primarily on serving farmers. It underwent several name changes over the years, becoming known as the Rural and Industries Bank from the 1940s until its rebranding to the Bank of Western Australia in 1994.
As of now, the Commonwealth Bank has been contacted for a response regarding these developments.
