After lifting rates, announcing record profits, and axing thousands of jobs, the banks are now being given a massive reality check.
The champagne's on ice, the butlers are ready and the trip of a lifetime awaits
The big banks are axing thousands of jobs, raising interest rates and saying times are tough, yet they're making bumper profits and getting ready to party.
More stories from Today TonightTwo of our biggest banks are hosting lavish parties next month, celebrating their success - and consumers are fuming.
ANZ is sending staff on a luxury overseas trip, reportedly valued at $1.75 million. Today the bank told us it's worth $500,000, but it comes soon after the company axed 1,000 workers to save money.
According to Christopher Zinn from Choice “high-end parties at a massive expense, at the same time you're sacking people and putting up prices, is on the nose.”
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And it's only the finest for the 200 ANZ employees and guests. The Silvershadow cruise ship supplies a personal butler for each passenger, champagne, fresh fruit and flowers, plush robes and slippers, even personalised stationary. Guests can enjoy a beauty salon, shopping boutiques, a casino, gym and lounge.
ANZ's top performers will be flown to Singapore to board the luxury liner. They'll stop off at Kuala Lumpur for a day of shopping, then head to the island paradise of Langkawi.
It seems to be smooth sailing for the ANZ's shareholders. Last week the bank announced a record three month profit of $1.48 billion, and they don't seem to be cutting down on company expenses.
More stories from reporter Tineka Everaardt
ANZ funds free bus trips for executives from Melbourne's city to the neighbouring Docklands, about a ten minute journey. It's got many consumers confused and asking why they don't just take public transport to cut costs.
“It’s a beautiful position of two contrary statements, one crying poor, one living it up on the high seas,” Zinn said.
299 Commonwealth Bank staff members are set to attend the party of a lifetime - a pirate themed extravaganza.
Yahoo!7 News: Commonwealth bank puts on a pirate party
Held in the picturesque Victorian town of Lorne, the resort where the party will be held boasts twelve acres of lush landscaped gardens, breathtaking beach views, tennis courts and a golf course.
“Which moron from marketing made this happen,” marketing expert Simon Hammond asked.
Hammond says the banks are out of touch. “The behaviour of these banks is such that it makes us want to dislike them even more.”
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But Zinn says it's important to remember these parties are thanking frontline workers, and not high level executives.
“The people who work at the frontline of banks work really hard, and they get the stick,” he said.
The parties come just days after all Big Four banks increased their standard variable rates, saying the cost of 'bank funding' is rising because of a rocky economy.
The Commonwealth home loan rate now sits at 7.41 per cent; Westpac at 7.46 per cent; ANZ at 7.36 per cent; NAB 7.31 per cent.
“I reckon they should dress like pirates every day - or bandits,” 3AW radio presenter Neil Mitchell said.
“I think they're an insult to people who have got mortgages and watching their rates go up,” he added.
The Commonwealth Bank told us third party suppliers are footing the bill for its get-together, and the trip involves workshops and training. ANZ says they understand the concern people feel about the cruise, and that they will review their program.
Zinn says consumers don't want excuses, they want action.
“You have to listen to your customers, because otherwise they are going to be moving, and that’s probably a language you will understand.”
Response statements- ANZ
ANZ has announced that it will review its CEO recognition program moving forward with a view to finding alternate ways of recognising junior staff that better reflect the more challenging times we are operating in.
We absolutely understand the concern people feel about the cruise reward to recognise junior staff. It was put in place 12 months ago in very different times and the dilemma we had was that we didn't feel we could go back on the understanding we had with those staff to provide this reward.
Times are now much more challenging for the bank and for the wider community. We know that we need to do things in different ways - ways which show restraint and which meets community expectations.
This year's program was booked and paid some 12 months ago and we feel we have understanding with those staff to provide this recognition reward. So we are where we are. Obviously in the current environment it's not something we would have considered.
The actual cost of this year's program is approximately $500,000.
- COMMBANKThe Commonwealth Bank will host a two day educational conference for mobile bankers in early March in Victoria. This conference is paid for by third party suppliers and comprises two full days of educational workshops and presentations from internal and external specialists, including training. A themed dinner event is also planned for this conference.
Conference participants will give up their time from midday on the Sunday to attend this program.
We are disappointed at the inference a legitimate educational and reward program is being funded through an interest rate rise, which is false.
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