Bendigo looks to avoid cuts
(20 July 2009 – Australia) Bendigo and Adelaide Bank has announced that it is looking to avoid a redundancy program by suggesting that workers take unpaid leave.
In a move that has been mirrored by a number of companies around the world since the global finance crisis took hold, staff have been requested to take 10 days unpaid leave over the next 12 months, with the salary reduction to be spread evenly across the year.
Bank spokesman Owen Davies said the slowing economy and a flattening of demand for credit meant the bank currently had excess staff capacity.
Instead of moving straight to redundancies, Bendigo is looking to reduce costs in the short-term but retain as much capability that will be needed to accommodate the growth that will come eventually as the economy recovers.
While the program is voluntary, the bank expects strong take up.
Davies said that the bank has asked their employees for their support in order to position the bank to grow as recovery comes.
He also said that like Bendigo, a lot of firms have now worked out there is a huge cost in the traditional response, which is a redundancy program.
That leaves companies unable to take advantage of opportunities as things turn around. They also face costs in hiring and training new staff, he said.
The bank’s program represents the next generation of thinking around managing expenses, Davies concluded.
Bank spokesman Owen Davies said the slowing economy and a flattening of demand for credit meant the bank currently had excess staff capacity.
Instead of moving straight to redundancies, Bendigo is looking to reduce costs in the short-term but retain as much capability that will be needed to accommodate the growth that will come eventually as the economy recovers.
While the program is voluntary, the bank expects strong take up.
Davies said that the bank has asked their employees for their support in order to position the bank to grow as recovery comes.
He also said that like Bendigo, a lot of firms have now worked out there is a huge cost in the traditional response, which is a redundancy program.
That leaves companies unable to take advantage of opportunities as things turn around. They also face costs in hiring and training new staff, he said.
The bank’s program represents the next generation of thinking around managing expenses, Davies concluded.
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