This amid public service cuts
The Public Service Association (PSA) has issued a strong appeal to banks, urging them to adopt a flexible and lenient approach towards public service workers who are currently facing financial stress due to imminent job cuts.
This call for action comes in response to government-ordered spending reductions expected to result in significant job losses across the public sector.
Formal request to banking association
PSA has formally reached out to the New Zealand Banking Association, advocating for their members who are deeply affected by the job cuts. In a letter addressed to Roger Beaumont (pictured above), CEO of NZBA, PSA outlined the dire situation.
“Government ordered spending cuts will see several thousand public service workers lose their jobs and incomes over coming months,” wrote Kerry Davies, PSA national secretary. “Coming as this does at a time of increasingly high cost of living, this will place many under considerable financial pressure.”
Impact of economic downturn
Davies highlighted the unique and rapid challenges faced by public service workers.
“These job losses are unprecedented both in scale and speed,” he said. “We urge all banks to be mindful of the huge pressures this may place on some public service workers at a time of sharply rising cost of living, including higher mortgage rates.”
She further noted the broader economic issues compounding these challenges, such as a slowing economy and tightening labour market, which could create a “perfect storm” for those impacted.
Support during financial hardships
Davies stressed the critical role banks have during this challenging period.
“This is a time for banks to step up and do the right thing by their public service customers,” Davies said.
PSA urged the Banking Association to provide clear guidance to its member banks on how to fairly and in good faith manage the financial dealings with those affected by the public-sector job cuts.
“PSA is seeking the banker association’s support on behalf of our members and asks it to issue guidance to banks about taking the cuts into account when dealing fairly and in good faith with affected people,” Davies said.
The industry body also suggested measures like interest holidays and interest-only periods without penalty as viable solutions to alleviate the financial burden on affected workers.
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