Westpac slammed for offshoring 190 Aussie jobs: ‘Dangerous'
Westpac has announced it will be offshoring 190 Australian jobs to the Philippines, with South Australian and New South Wales workers mostly impacted. The move has sparked concerns over the security of customer data, with the union warning it could have 'dangerous implications' for customers.
The Finance Sector Union said about 190 roles from the major bank's mortgage operations, institutional banking and customer solutions would be offshored. The union said the move came just three months after Westpac's CEO said the bank was 'in very good shape', recording a $7 billion profit in the last financial year.
A Westpac spokesperson told Yahoo Finance the changes were in head office and operational functions and 'represent around half a per cent of our workforce'.
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'Westpac is a major Australian employer, with over 30-thousand people across the country,' the spokesperson said.
'From time to time, we change the way we operate and this can impact some roles and responsibilities.
'When this happens, we work closely with employees to provide tailored support and assistance with career transition.
'We try to keep as many employees in the Westpac Group as we can, through retraining and redeployment.'Finance Sector Union national secretary Julia Angrisano has condemned the move.
'These are skilled bank workers managing complex commercial relationships and sensitive information,' she said.
'Our members who work at Westpac have told us about their concerns not just for their own jobs, but for customers and the security of their data.'
Westpac workers, who did not want to be identified, told the FSU they were concerned about the implications of their roles being offshored.
'Given the sensitivity and risk associated with the kinds of accounts we manage, it's clear that Westpac hasn't considered the risk this poses to customers, shareholders and staff,' one worker said.
Another worker noted the 'complexity and compliance risks associated with the complex accounts' they worked with.
Angrisano said Westpac planned to outsource management and ethical review activity to Concentrix, which is an existing partner.
'We've seen what can happen when important work goes offshore, something as important as ethics being offshored can create dangerous implications and have flow on effects,' she said.
It comes a year after Westpac cut 132 jobs from its risk-management, operations and sales divisions, with some positions shifting offshore to India and the Philippines.Sign in to access your portfolio
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New York Post
6 hours ago
- New York Post
Inside the battle to control the world's supply of rare earths
Back in 2009, Jim Kennedy, a consultant and entrepreneur of rare earths — a group of 17 metallic elements, including 15 lanthanides, crucial for modern technology — met with a top official at the Pentagon to discuss the future of these precious minerals. 'He was almost indifferent to the issue,' Kennedy tells The Post. 'His dispassion was staggering. It was one of the most disappointing meetings in my life.' Sixteen years later, that indifference has widely disappeared. Rare earths — used for everything from smartphones, electric cars and airplane engines to medical equipment, wind turbines and military applications like missiles and fighter jets — have become one of the most in-demand and politically contested industries in the world. 10 A miner carrying a heavy bag of rare earth-filled mud in China, which controls many of the most crucial rare earth elements now required for the sophisticated technology that powers everything from cellphones to fighter jets. REUTERS Rare earths 'enjoy an unusual level of bipartisan political support because they are vital both to economic development and national security,' says Melissa Sanderson, a former president and current board director at American Rare Earths, an Australian company focused on developing rare earth projects, including one in Wyoming. Rare earths aren't just a big part of modern technology; they're in many ways the most critical components. They're used as heat-absorbing agents in wind turbine motors, as strengthening and anti-glare agents in iPhones and fighter jets and as clarifying agents in MRIs. They're also almost completely controlled by China. Between 2020 and 2023, 70% of our rare earth imports came from China, according to Statista. That number jumped to 80% last year. And the US is 100% reliant on China imports of Yttrium, a rare earth metal used in everything from cellphones to TVs to radiation therapy used to treat liver cancer. 10 Rare earths 'enjoy an unusual level of bipartisan political support because they are vital both to economic development and national security,' says Melissa Sanderson, a former president and current board director at American Rare Earths. China has been fickle about granting export licenses for rare earths, although their grip has shown recent signs of weakening. President Trump had a lengthy (and rare) phone call with Chinese President Xi Jinping on June 5 and in a social media post after the call, Trump wrote 'there should no longer be any questions respecting the complexity of Rare Earth products.' The next day, China granted temporary export licenses to rare-earth suppliers of the top three US automakers. The irony is that for much of the mid-20th century, the US was a global leader of rare earth elements. But 'demand was exponentially lower at the time,' says Sanderson. 'Therefore, the output from our sole producer — Mountain Pass Materials, known as MP Materials now — was sufficient to satisfy a large percentage of then-existing demand.' The Las Vegas-Nevada-based company still operates the only rare earth mine and processing facility in the United States. 10 President Trump and President Zelensky meet in the Oval Office in February. Soon after this meeting a deal was made for Ukraine to supply vital rare earths to the United States. AFP via Getty Images America's rare earths lead came to an end in 1980, brought on by changes to US regulations. Because processing rare earth minerals involves the separation and removal of uranium and thorium, it can lead to radioactive waste and other contaminants. 'The US was concerned about the environmental impact, since particularly with the technology of the time, there were significant impacts to air, water and even ground quality that would not have met US standards,' says Sanderson. It wasn't the same story in China, who were more willing to accept the dangerous pollutants 'as a price for achieving its market dominance,' she says. China's monopoly of rare earths doesn't just give them an economic advantage. 'China has been 'weaponizing' its market hegemony for many years, in increasingly sophisticated and legal ways,' says Sanderson. 10 Pres. Trump with Chinese leader Xi Jinping. Having conceded its lead on rare earth mining, the US is playing a serious game of catch-up with the Chinese. REUTERS The country first flexed their power in 2010, blocking rare earth exports to Japan, a major producer of permanent metal magnets. 'That decision was overturned by the World Trade Organization, so China does not exert its control as overtly now,' says Sanderson. But in the current trade tussle with the US, 'China has identified seven crucial elements under its export control regime which it will not sell to the US,' says Sanderson. 'Due to concerns that while suitable for civilian economic use, they could also be used for military purposes.' While President Trump's tariffs are often blamed for exacerbating the tensions, Kennedy, who serves as president of ThREE Consulting, a rare earths consultancy, says the tariffs are actually 'forcing China to reveal the magnitude of this threat. Absent Trump's tariffs, China would never have shown its hand until it was too late.' 10 The US is 100% reliant on China imports of Yttrium, a rare earth metal used in everything from cellphones to TVs to radiation therapy used to treat liver cancer. REUTERS Just how bad could it get? Kennedy believes that if left unchecked, and China was allowed to continue their embargo without consequences, 'the non-Chinese world would need to shut down and re-engineer most everything that comes off an assembly line,' says Kennedy. 'This is not an overstatement.' The stand-off with China may be at the forefront, but it's not the only way Trump is maneuvering to protect the nation from rare earth depletion. Greenland contains (by some estimates) about a quarter of the world's rare earth minerals, and Trump has suggested that the US could annex the autonomous territory in Denmark. 10 A chunk of Ytrium, once of the most important rare earth elements. Phil Degginger/imageBROKER/Shutterstock The US also recently inked a landmark deal with Ukraine, which has approximately 5% of the total global mineral reserves. Although Trump declared in February that Ukraine would be providing 'the equivalent of like $500 billion worth of rare earth [minerals],' the exact amount wasn't specified in the deal, other than that the US and Ukraine would be splitting profits 50/50. There have also been efforts to mine rare earths from an entirely new source — the bottom of the Pacific Ocean. 10 Consultant Jim Kennedy was one of the first industry insiders to raise the alarm around the rarity — and potential global conflict — surrounding rare earths. It's called the 'Clarion Clipperton Zone,' a remote area of the Pacific between Hawaii and Mexico, roughly half the size of the contiguous US. This seabed region is rich in polymetallic nodules, the rock-like formations that contain some of the most sought-after rare earths in the world. It's a veritable goldmine waiting to be unearthed. In fact, the US Geological Survey recently estimated that the Clarion Clipperton Zone contains more nickel, cobalt and manganese than all terrestrial reserves combined. The Metals Company, a Canadian firm with US investment ties, is already making strides to become the first to mine commercially in the region. They conducted a field test back in 2022, and the company is currently applying for 'exploration licenses and commercial recovery permits' from the US. There are legal hurdles that could slow down their ambitions. Despite a 1980 law passed by Congress to regulate seabed mining, the Clarion Clipperton Zone technically falls under the jurisdiction of the International Seabed Authority, which operates under the United Nations Convention on the Law of the Sea. Whether the ISA has exclusive authority over the region remains open to debate. 10 Gerard Barron, CEO of The Metals Company, has dismissed some of the concerns about potential environmental damage surrounding rare earth mining efforts. AFP via Getty Images There are also environmental concerns. Arlo Hemphill, a Senior Oceans Campaigner at Greenpeace, warns that any move to mine the Pacific 'would be an ecological disaster. Scientists have not even had a chance to fully explore and understand the wonders of the deep, but a greedy corporation wants to tear up this ecosystem and cause immense ecological damage.' Gerard Barron, CEO of The Metals Company, dismisses these concerns, pointing out during a recent interview that Indonesia regularly mines in biodiverse rainforest regions. 'For some reason,' he said during the interview, 'people think it's okay to go digging up rainforests to get the metals underneath them, yet we're debating whether we should be going to pick up these rocks that sit on the abyssal plain?' (Barron did not respond to the Post's request for comment.) There are other options, but many are just as controversial. Sanderson believes the key will come down to strengthening our relationship with allies like Canada and Australia. 'They have significant natural resources and experienced and large mining companies,' she says. 'Cooperation with these countries is vital for filling the knowledge gap. The US doesn't have nearly enough experienced chemical and process engineers, as just one example.' 10 Rare earths are also crucial components of military fighter jets. Soonthorn – It took half a century for China to achieve its market position, she says, and the US needs an integrated supply chain from mine to magnet, but we're essentially starting from scratch. The US also needs to reform its mining regulatory system, which has a dysfunctional permitting process and some of the longest lead times for new mine production in the world. 'On average, companies wait anywhere from eight to fifteen years from when a deposit is initially determined to be economically interesting to when production can start,' says Sanderson, 'and some have waited significantly longer than that.' New mining projects are also frequently litigated, 'multiple times from multiple angles,' says Sanderson, which can add even more years to the wait time. With the return on investment horizon so long and the prospects so uncertain, many companies 'have difficulty attracting the investment necessary to support the high costs of building a mine,' she says. 10 Miners of rare earths such as these in China are increasingly at the forefront of the global race to control many of the elements that will determine our technological future. REUTERS Kennedy, however, is hopeful for the future. His company, Caldera Holding LLC, is collaborating with federal labs to refashion a former iron ore mine in Missouri to focus on rare earth minerals. He believes his mine is the only one that can provide 'geopolitically significant quantities' of rare earths.' But the ball, says Kennedy, is very much in Trump's court. His trade war has caused uncertainty, but the president's actions 'strongly suggest that delinking from China is real. This can be helpful, but follow-through is critical.' It's now up to the Trump administration to provide low-cost loans, grants and production tax credits to US-based mining companies that have (at least until now) faced almost insurmountable obstacles. 'Failure to support integrated projects,' says Kennedy, 'will result in many slow-motion train wrecks.'
Yahoo
6 hours ago
- Yahoo
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It's been an encouraging week for economic data, with inflation showing signs of moderation and consumer sentiment rebounding for the first time this year. The labor market remains broadly stable, with the unemployment rate holding at a healthy 4.2%, although a recent uptick in continuing jobless claims suggests some signs of cooling. Altogether, the backdrop appears supportive of the Federal Reserve's path toward easing. But Wall Street watchers say policymakers may need more convincing before delivering any cuts. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments "We don't know really how the second half of the year is going to play out," Loretta Mester, former Cleveland Fed president, told Yahoo Finance on Thursday. Mester added that although the "hard" economic data, like the recent labor and inflation reports, have been encouraging, "the real question is what is going to happen in the second half of the year and [if] those trends continue. That's where the high level of uncertainty still is with us." The uncertainty centers on the scope and scale of President Trump's tariffs in the aftermath of his April "Liberation Day" announcements, which sent shockwaves through markets and businesses. Since then, many of those "reciprocal" tariffs have been paused, but the 10% baseline duties for most countries remain in place. The president is set to notify US trading partners of their respective unilateral tariff rates in the coming weeks. Read more: The latest news and updates on Trump's tariffs In the meantime, Mexico and Canada continue to face fentanyl-related tariffs, and industry-specific tariffs on steel, aluminum, and autos remain unchanged. Earlier this week, the US and China agreed to a framework and implementation plan aimed at easing tariff and trade tensions. President Trump signaled his approval, saying the deal was "done," pending final sign-off from him and Chinese President Xi Jinping. As part of the agreement, Trump said the US would impose a total of 55% tariffs on Chinese goods. Many market observers said the deal was sparse on details. Outside analysts like the budget lab at Yale have calculated the effective tariff rate on China overall to be around 33%. "The Fed is on hold until we get a little more clarity about not only the magnitude of the tariffs and the breadth of the tariffs, but what effect they all have on inflation and what effect the tariffs and other policies, including the budget bill, will have on growth and employment," Mester said. Despite the words of caution, markets are increasingly confident that rate relief is on the horizon, with nearly 70% now betting the Fed begins easing in September, up from 60% a week ago. Investors are putting a roughly 25% chance on the first cut arriving as soon as July, according to CME Fed projections as of Friday afternoon. Still, markets have almost fully priced in that the Fed will hold rates steady at next week's policy meeting. Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management, said any rate cuts before September would likely require significant labor market deterioration. He also cautioned that the inflation threat hasn't disappeared, especially with tariff effects still uncertain. "People are suggesting that maybe the tariffs won't have an inflationary impact. I think it's too early to decipher that," Schutte said. "All the inventories that have been pulled forward by importers, by consumers, by businesses to actually steady and ready themselves for the tariffs may be impacting the inflation data right now. It often has taken time in the past for that to show up in the actual numbers." He added that the Fed is in a "wait-and-see time period." "That's where I don't think the Fed likely cuts until September, unless you see significant weakening in the labor market, and then the question is always: Is it too late or not?" HSBC US economist Ryan Wang acknowledged the "double-sided risks" tariffs pose, noting that while goods prices will likely continue to rise through the rest of the year, early signs of a cooling labor market could help offset that by exerting downward pressure on inflation. But while markets may be betting on a smooth path to cuts, Wang warned the Fed will need confidence that inflation isn't rising in an "uncontrolled fashion" and that activity in the broader economy isn't slipping too quickly. "The benign version of rate cuts will take time to develop," he said. For now, the Fed appears firmly in a holding pattern — acknowledging the encouraging data, but not yet convinced it's time to shift course. Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Yahoo
Aussie mum's $1,200 electricity bill shock sparks warning for millions: ‘Outrageous'
A Queensland mum has shared her shock over an 'insane' $1,200 electricity bill her family are facing. Millions of Aussies are being warned to brace for higher electricity bills to hit their accounts, with household power bills set to rise by up to $228 in the coming weeks. Rachel Green usually spends around $600 and $700 per quarter on power bills for her young family of four. While their winter bills have been known to creep up to $800 if they are using heaters in winter, the 32-year-old Gold Coast mum was stunned after seeing that her next bill was predicted to be $1,236.98. 'We have never had a bill this high, even through summer if we use the air conditioner,' Green told Yahoo Finance. RELATED 1.3 million Aussies face up to $228 electricity bill hike in weeks Centrelink cash boost coming from July 1 for millions of Aussies NAB worker saves grandmother from $50,000 heartbreak after noticing tiny detail Green has a newborn and a toddler, and said the extra heater the family was using could be contributing to the higher cost. 'We're heating one extra bedroom at the moment as we have a new baby, but we try to keep the heaters at around 18C and only use them at night,' Green said. 'We did receive an email from our provider saying they are putting up our power prices, so that could definitely be a factor.'Household power bills are set to rise from July 1, after energy regulators confirmed the final default market prices for the year. In South East Queensland, where Green is based, prices are set to rise by $77 annually to $2,143. This is based on a residential property without a controlled load. Wholesale costs (the price retailers pay to buy electricity from the energy market) and network costs (the price of transporting electricity) are two of the biggest contributors to the price increases. While only a minority of customers are on default offers, energy retailers often adjust the rates of their popular plans in line with default prices. That means many households will see higher prices next month. Households will get another round of the federal government's energy rebates from July 1, with two $75 rebates given each quarter until the end of the year. Green found that her family normally used around 22.4 kWh of power in April or $8.90 a day. In June, that jumped to 44.2 kWh or $16.22 a day. Green said bills were one of her household's biggest expenses, after their mortgage. 'Interest rate cuts haven't improved the situation that much,' she said. "We're paying about $10 less each week, which is great, but when everything else keeps going up, it really doesn't make that much of a difference if any. What we're saving in rates we're spending on other bills that keep going up.' New research from Finder found nearly a third of Australian households experienced 'bill shock' when they received their most recent summer power bill. On average, households spent $328 for their quarterly electricity bill in April. However, costs are expected to go up as things cool down. Finder's latest analysis found it would cost $249 to run a heater on average this winter, with an electric heater costing $241 on average and a gas heater $301. Finder energy expert Mariam Gabaji said electricity usage was up and it was hitting people in their hip pockets. 'Energy bills are increasingly becoming a source of financial stress for Australian households,' she told Yahoo Finance. 'Bill shock can take a huge financial toll and can quickly spiral out of control if they start to pile up.' Gabaji said simple steps like adjusting the thermostat and reducing reliance on high-energy devices during peak periods could curb costs. 'Compare your electricity plan twice a year, so you're not unnecessarily giving providers your hard-earned cash,' she said. Green said she was in the process of switching providers and had used the government's Energy Made Easy website to compare prices. Victorians can use Victorian Energy Compare. She said this process helped her realise she was being "ripped off" and paying too much for her electricity. 'We're also now really rugging up so we don't have to run heaters as often,' she said. 'There are three blankets on each bed and the husband is sleeping in a beanie. But with overnights of 3 degrees in our area, we're still heating the kids' bedrooms at night. 'I feel a bit sad that in modern Australia, families are going without heat in their homes over winter because of the outrageous costs of power.'
