The Bank of Queensland is under pressure to disclose the human impact of a plan to adopt automation technology, with fears it could lead to major cuts in staffing levels.
The Queensland-based bank intends to automate 80 percent of key processes between FY24 and FY26, coinciding with a period where job losses are also expected. [pdf].
Over the years, BoQ has been working through a “significant” transformation with final integration work of ME Bank underway and building customer base on its new core banking platform.
BoQ said in its FY23 results that it is simplifying the bank including its operating model and processes, to reduce complexity, duplication, operational risk and costs.
Part of its plans involves cutting 400 staff by FY26, with 150 job losses expected in the first quarter of 2024.
The Finance Sector Union (FSU) has “plenty of questions about these planned job cuts” and intends to seek answers at a meeting with BoQ representatives later this week. It also sought answers at the bank’s recent annual general meeting (AGM).
National Secretary for the FSU Julia Angrisano told iTnews “the recent announcement of cuts to up to 400 jobs at BOQ, which represents over 10 percent of its workforce, is a real cause of concern for FSU members.”
“BoQ management have not engaged with the FSU about this and BoQ workers are understandably concerned about their ongoing job security,” Agrisano said.
“We have sought a meeting with BoQ representatives, which is taking place [this] week, to seek further clarification but so far it appears that these cuts are driven by a desire to reduce costs.”
A spokesperson for BoQ also told iTnews its “operating model FTE reduction out to FY26 is expected to be up to 400 FTE [full-time equivalent staff].”
“The initial focus has been on simplifying our structures and bringing like teams and functions together,” the spokesperson said.
“Further impacts are expected as a result of digital automation and process efficiencies leading to better customer outcomes.”
During the AGM, BoQ chair Warwick Negus responded to the union’s questions, stating “the cuts that are being referred to are the productivity that we need to get in the coming years”.
However, he said staff reductions “will be largely achieved through natural attrition, so we don’t envisage relying heavily on redundancy or anything.”
“It is going to come out over a couple of years, and over a couple of years you can achieve that sort of attrition,” he said.
Negus added that for any other roles that are being made redundant, “we will make an earnest effort to retrain and place those roles in other parts of the organisation.”
“In addition to that 400, at the same time we’re hiring for other roles as well, around technology, and customer service,” he continued.
“There are plenty of areas where we’re hiring so my hope and the hope of management is that most of this will be achieved through attrition.
“We will be able to achieve a much better cost-to-income ratio by achieving the productivity through investing in technology and simplification of our business.”