AMP's Controversial Move: Offshoring Aussie Jobs for Cheaper Labor Costs

AMP Offshoring Jobs

AMP has recently faced significant backlash for its decision to offshore 20 Australian jobs as part of a strategy to achieve cheaper labor costs and to simplify its business operations. An AMP spokesperson described the decision as difficult but essential.

The decision aligns with recent actions by other banks, such as Westpac, which announced it would be offshoring 190 local jobs to the Philippines. The Finance Sector Union revealed that the jobs affected at AMP include 10 customer service roles and six specialist home loan roles. However, AMP has assured affected employees that they can apply for five new roles within the company.

Nicole McPherson, the national assistant secretary for the FSU, expressed that this outcome is a terrible blow for AMP workers and their families, as well as AMP customers. She highlighted the implications of these roles being moved offshore, stating that when AMP customers require assistance, they may no longer be speaking with someone in Australia.

AMP has confirmed that the move is indeed aimed at achieving cheaper labor costs, as reported by the FSU. In a recent statement, AMP acknowledged the contributions of impacted workers and noted that these changes are necessary for the company to remain competitive.

Despite the controversy, AMP reported a 15.1% increase in its underlying net profit after tax for the 2024 financial year, although its statutory net profit dropped by 43%. The bank's profits also saw a decline of 22.6%.

The FSU is currently campaigning for a new enterprise agreement with AMP workers, following the expiration of the previous one. Concerns have also been raised regarding AMP's reduction of redundancy pay caps without prior consultation with employees, prompting worries about the conditions of workers as the company continues to streamline its operations.