Bank staff pressured to act 'unethicallly': Union

February 22 2017
  
Bank staff pressured to act 'unethically': Union calls for greater whistleblower protections
Georgia Wilkins
http://www.smh.com.au/business/banking-and-finance/bank-staff-pressured-to-act-unethically-union-calls-for-greater-whistleblower-protections-20170221-guhl0j.html

Bank staff are pressured not to "rock the boat" by calling out unethical or unlawful behaviour, the union representing finance workers says.

In a submission to a parliamentary inquiry calling for greater whistleblower protections, the Finance Sector Union says while employers have whistleblower policies in place, workers are afraid to access the policies because of pressure from management.

Why Australian whistleblowers deserve better

Whistleblowers who call out corporate corruption in America receive government payouts, but those in Australia face unemployment and an uncertain future.

The union says staff have reported instances where they have been warned by managers not to report unethical behaviour and occasions when they have been directed to undertake unethical behaviour.

Staff have also reported being subjected to onerous procedures after speaking out about unlawful activity, it said.


Bank staff say they feel they can't speak out. Photo: Getty Images

"The internal systems and policies within the finance industry are not sufficient to encourage an employee to come forward as a whistleblower or protect an employee who activates whistleblower protections," it says.

The parliamentary joint committee inquiry into whistleblower protections begins hearings on Thursday.

The FSU's submission says whistleblower laws should provide greater protections and compensation for workers so they report the unethical behaviours they observe "each week".

It says the industry had developed over the last 10 years remuneration structures that "seek to exploit every customer interaction as a sales opportunity" and ignored the financial needs of the customer.

"Public trust and confidence in the Australian finance sector is essential to the efficient running of the economy. Strong whistleblower laws are essential to rebuilding trust and confidence after a long series of crises and scandals in the sector."

Whistleblower protections have been the subject of debate following high-profile corporate scandals at the Commonwealth Bank, CommInsure, IOOF, 7-Eleven and Origin Energy.

The scandals have highlighted shortcomings in the law and the personal cost of "speaking out" including job loss, bullying and being the target of smear campaigns.

The union has also called for new laws to cover workers who blow the whistle on structures that are designed to exploit customers or ignore their best interest.

"It is not a coincidence that the number of scandals involving poor advice and customer exploitation has increased as remuneration and management systems designed to exploit customer interaction have become more prevalent," it says.

The FSU represents workers who are employed in banks, insurance companies, credit unions and superannuation funds across Australia.

Transparency International has called for whistleblower protection laws to extend to whistleblowers who reasonably make their concerns public.

Greg Medcraft, the chairman of the Australian Securities and Investments Commission, has backed offering money to whistleblowers in recognition of the risks they took and the damage that could be done to their career prospects.