Union warns Westpac targets hurt mortgage competition
The Finance Sector Union has warned that Westpac's (ASX:WBC) new home lending sales targets could drive experienced staff out of the bank, ultimately stifling competition within Australia's mortgage market.
Westpac staff were reportedly blindsided in May by substantial increases to their performance targets—some skyrocketing by up to 33%.
Compounding staff frustrations, the changes were backdated to April 1 under a rigid new regime where failing to meet the quotas could lead to formal performance management or immediate dismissal.
FSU National Secretary Julia Angrisano condemned the unannounced changes, stating that introducing such high-pressure tactics without prior consultation risks widespread burnout and a wave of resignations among seasoned lenders.
Angrisano warned that losing these skilled professionals could severely damage smaller lenders' market share, further entrenching the dominance of major financial institutions like the Commonwealth Bank and Macquarie.
The controversial targets come despite Westpac recently posting a $3.4 billion first-half profit, heavily capitalising on record home loan growth.
However, the banking giant noted that recent shifts in housing-related tax policies have triggered a 20% drop in investor loan applications, creating a tougher environment for lenders to meet standard quotas.
While Westpac staff in South Australia and the Northern Territory have been excluded from the new regime, the union is demanding immediate consultation and greater transparency regarding how performance frameworks are established.
