New bank staff interest rates

Press, 31 October 1977, Page 12

New bank staff interest rates

PA Wellington New staff-loan interest rates for A.N.Z. Bank employees would take effect today, the bank’s general manager for New Zealand (Mr B. B. Dickinson) said. Details of the new policy were sent to all employees on Friday afternoon. The move followed legal argument which lasted for an hour in chambers before members of the Industrial Court on Friday. The hearing was arranged within an hour or two of the bank filing a motion to strike out an application by the Bank Officers’ Union, which had sought a restraining order or injunction to stop the bank imposing the new loan rates.

That application, along with a second from the union asking the Court to rule the dispute a dispute of rights and therefore follow disputes procedures in the award, was set down to be heard on November 9. Judge R. D. Jamieson said

that it would be precipitate to strike out the injunction application after a hearing at such short notice. The Court was not completely satisfied on first sight that it could take it upon itself to make an immediate order on either the restraining aspect or the question of jurisdiction. Mr Dickinson said that staff interest rates would rise to 60 per cent of customer rates over the next eight years and a half. A qualifying period of six years would be introduced but other restrictions on qualifying for a staff loan would be abolished. All staff members, whether male or female, single or married, would be eligible for a loan.

The secretary of the Bank Officers’ Union (Mr W. D. Aimer) said that the bank’s final offer was not acceptable. The union was unhappy that the bank still intended to raise the rates of existing mortgages.