Australia's Westpac cuts teller bonuses to protect customers
By Paulina Duran
SYDNEY, March 7 (Reuters) - Australia's Westpac Banking Corp
said on Thursday it would scrap bonuses for thousands
of branch tellers, a move to regain customer trust following
accusations at a misconduct inquiry that incentives had led to
Westpac is the first of Australia's major banks to ban
bonuses for bank tellers in the wake of scorching criticism from
the Royal Commission inquiry over aggressive sales tactics at
financial services firms.
From April 1, 2,300 Westpac bank tellers would have their
salary lifted by A$500 ($351.65), while a bonus target of
A$1,000 would be scrapped, the Sydney-based lender said in a
statement. The bank operates the largest teller network in
"A simple fixed-pay-only model takes us a step further to
reinforce the importance of putting the customer first and
providing our 2,300 tellers with more clarity and fairness
around how their work is remunerated," George Frazis, Westpac
group consumer bank chief executive, said.
Westpac tellers were currently eligible for the bonus
depending on a number of factors, including the features of the
products they sell, the location of their branches and customer
satisfaction measures, the bank said.
The change would apply to tellers at Westpac and its three
Australian subsidiaries - St. George, Bank of Melbourne and
Other Westpac retail staff would continue to receive
Executives from Westpac and Commonwealth Bank of Australia
are scheduled to be grilled by a parliamentary
committee on Friday about how they are responding to the Royal
($1 = 1.4219 Australian dollars)
(Reporting by Paulina Duran; Editing by Stephen Coates)
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