CBA 0.48% $74.34 commonwealth bank of australia.

david murray is a desperate dope ...

  1. 5,816 Posts.
    Hmmm... David Murray's job shedding initiative is a dead set 'no brainer' ...

    Union vows to fight as bank axes 3700 jobs
    September 19, 2003 - 10.23am

    The Finance Sector Union warned today of industrial action over the Commonwealth Bank's decision to slash 3700 jobs - or one in ten of its staff - over the next three years.

    The union's communications manager Rod Masson said the job cuts would affect customer service.

    "There's no way you can take that amount of people out of an organisation and not have an impact on service," Mr Masson said.

    "It's an affront to bank staff and our members aren't going to take it lying down."

    Mr Masson accused Commonwealth Bank chief executive officer David Murray of having a "lack of vision" for devising the "revamp" of its customer service operations, which will reduce its workforce of 33,000 by 3700 over the next three years.

    Around 25 per cent of the reduction had already happened, says the bank.

    The job cuts are part of CBA's "Which new Bank" customer service transformation, which it launched today.

    The bank said in implementing its transformation, it will redirect its usual project spend of $600 million and spend an additional $620 million in the key areas of staff training and skilling, systems and process simplification and technology.

    It will also invest a further $260 million over this period in the branch network.

    CBA said the service transformation will be supported by increased investment of more than $200 million in training and developing the bank's staff over the next three years, double the bank's normal spend.

    ``We expect the superior customer service resulting from our transformation program to deliver compound annual earnings per share growth over 10 per cent over the three year period and productivity improvements of four to six per cent per annum, subject to current trading conditions being maintained,'' CBA chief executive officer David Murray said.

    Mr Murray said the net impact over the three years will be positive and the profits in subsequent years will be greater than they would have been.

    ``The board regards the expenditure incurred on this program to be in the nature of an investment in the future of the bank,'' he said.

    There would be additional charges against profit in the current financial year, but the bank will add back the non recurring charges, expected to be around $500 million after tax, in considering the amount to be distributed as dividends to shareholders.

    Consequently, CBA expected to be able to continue the uninterrupted pattern of increased dividends that it had been able to deliver since privatisation.

    Increased revenue will come from enhanced service and sales. Cost savings will result from efficiency gains, sustainable service improvements and streamlined processes, CBA said.

    ``As a consequence of process simplification, work redesign and removing unnecessary work, the bank's domestic workforce is expected to reduce by approximately 3,700 between July 2003 and June 2006,'' CBA said.

    The bank expected that between now and 2006, employment levels in front line customer service positions would be largely unchanged.

    Most of the future job reductions would be in processing, administration and head office related functions.

    Job reductions would be spread over the next three years.


    Cheers ... tight stops.

    This is only my view ... read the red stuff.

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