Australia’s Westpac agrees pay rise with union

May 31 (Reuters) – Westpac Banking Corp (WBC.AX), Australia’s No.3 lender, said on Monday it has reached an agreement with an employees’ union to raise pay by at least 2 percent in 2010 and 4 percent in 2011.

Financials

The agreement with the Finance Sector Union covers 26,000 employees at Westpac Bank but it does not include employees of St George Bank and Bank SA. The Westpac group has a total of 37,000 employees.

The agreement will be put to an employee vote and comes at a time when banks are faced with rising funding cost, though analyst say the pay increase was expected. (Reporting by Narayanan Somasundaram; Editing by Ed Davies)

Oz firm Westpac reverses move to end India offshore operations

Sydney, May 18 (ANI): Australian bank WESTPAC has dispatched a strike team to India as part of an offshoring reconnaissance mission a week after the bank’s chief, Gail Kelly, drew widespread praise for suspending the practice of sending jobs overseas.

The Australian understands the bank’s top technology executives have travelled around India over the past two weeks to meet with about eight outsourcing companies.

Two outsourcers will be selected to perform a range of work and are set to benefit as WESTPAC spends hundreds of millions of dollars over the next couple of years to update core banking systems and integrate complex technology functions as part of the 12 billion dollar acquisition of St George bank.

Several sources confirmed the WESTPAC contingent met with technology firms Accenture, IBM, EDS, Wipro Technologies, Tata Consultancy Services and INFOSYS, as well as one or two others.

A fortnight ago Ms Kelly announced she had put the brakes on WESTPAC’S offshoring of Australian-based jobs, a decision prompted by the recession and expectations that unemployment could rise next year to 8.5 per cent.

WESTPAC declined to comment on the visit to India or the bank’s future offshoring plans. (ANI)