200 more jobs axed as slump takes hold

ANOTHER 200 Kiwi workers are set to lose their jobs as the reality of the international economic crisis kicks in.

ANZ National Bank yesterday confirmed it would axe 200 management jobs, following already-announced cuts of 200 front-line positions and 500 back-office jobs, which were to be outsourced to India by the end of next year.  

Those 900 bank staff are among 3000 Kiwis to be made redundant in the past six months, and thousands more jobs are predicted to go in the coming months. ANZ National yesterday said the redundancies were partly a response to the softening economic conditions.

Banking union Finsec has dubbed ANZ National's latest move "disgraceful". Union campaigns director Andrew Campbell says the job losses were a significant chunk of the Australian-owned bank's 10,000 New Zealand employees.

"You are talking about 10% of their entire workforce, which is a massive blow to the New Zealand economy by our largest corporate, and actually in the current environment, that's disgraceful."

Bank spokeswoman Virginia Stracey-Clitherow says the latest job cuts will affect fewer than 200 people and are part of a new global business model announced by ANZ National.

The worsening global economy is expected to result in further job losses across a range of sectors.

Our unemployment rate is predicted to climb from 4.2% to 6% by the end of 2009, which would bring total job losses to 126,000.

The finance, property, construction, retail and tourism sectors are likely to be particularly vulnerable because they have experienced some of the greatest growth since 2003.

In the past six months some of the country's big companies have announced redundancies Fletcher Building cut 600 jobs, Carter Holt Harvey laid off 300 workers with the closure of its Putaruru and Mt Maunganui sawmills and Air New Zealand announced plans to cut 200 jobs.

Campbell called on ANZ National to rethink its priorities. "They got all of their bank deposits underwritten by the government, they've had all of their off-shore borrowing guaranteed by the government what does New Zealand get in return? ... Further job cuts adding to the recession."

In October ANZ National reported a $1.16 billion after-tax profit for the year to September, down only slightly on last year. Chief executive Graham Hodges said it was a good result given the turmoil in global markets.

Financial commentator Bernard Hickey, from interest.co.nz, said the recession was here to stay. "We're seeing jobs being lost right around the economy."

But he emphasised that unemployment was still relatively low, meaning the country was in a position to weather the global recession.

"We've had recessions before where we've gone in with unemployment of 8-9%."

The ANZ National job losses were prudent given the global financial situation, Hickey said. 

- © Fairfax NZ News