Kiwibank offers unionists a deal

By KEVIN TAYLOR

State-owned Kiwibank has got the country's largest union touting for business on its behalf.

The Engineering, Printing and Manufacturing Union (EPMU) is offering its 55,000 members a special deal to join the latest arrival to the banking sector.

Union national secretary Andrew Little said yesterday that Kiwibank, and its owner NZ Post, were more union-friendly than some banks.

For the past 10 years the union had used an external company, Privilege Marketing, to arrange special deals for its members.

He said the EPMU had opted out of that arrangement and was now looking for discounted services on its own account.

The Kiwibank deal was the first that the union had arranged on its own.

The offer, mailed to all union members, said they could save up to $200 annually by switching to Kiwibank.

They were offered free eftpos, free transactions until June 30 next year, no monthly account management or base fees, and no home loan application fees.

The offer, signed by Little, said Kiwibank was owned by Kiwis and all its profits remained in New Zealand.

"That's why we've arranged an offer that will save you money if you open a Kiwibank account," the letter said.

Little said the deal was the same as that offered to all NZ Post staff. The union has 5000 members at NZ Post, including those working at Kiwibank.

He said Kiwibank had the "best deal going" of all the banks, but admitted the union had not looked at other banks.

"Kiwibank, or NZ Post as its owner, has shown a pretty friendly relationship towards our union anyway.

"We wanted something that fitted a pro-union profile as well."

The banking sector did not generally have a "pro-union flavour".

Kiwibank spokesman Bruce Thompson said members of organisations like unions had shown strong support for the bank, which opened its doors in February.

"We believe it is a logical marketplace for us. People in organisations like that have shown strong support for us."

Thompson refused to reveal if the bank had arranged similar deals with other unions, citing business confidentiality.

"We are obviously interested in New Zealand Post staff, the EPMU - but what we don't want to do is show our hand."

He said it was natural that the bank should look to work directly with people and groups that had an affinity with its style of operation.

Kiwibank, a NZ Post subsidiary, has now signed up more than 80,000 customers.

Thompson said he did not want to reveal what areas Kiwibank was targeting for customers.

"It's a very competitive environment and it would be wrong to start giving out piecemeal information as to what our campaigns and projects are."

Little said the early indication from members was that many were enthusiastic about the offer.

He did not know of any other unions arranging similar deals with Kiwibank.

NZ Post chief executive Elmar Toime said the company took industrial relations seriously and he thought the EPMU understood and supported the company's business strategies.

Because the union had members working in Kiwibank, it had a good understanding of the business.

He did not know who approached whom over the special deal, but he said the union obviously "felt good about the bank".

Herald feature: KiwiBank