Infosys rebuts union criticism over Australian bank staff contracts

Bengaluru: Infosys has pushed back against allegations by Australian trade grouping Finance Sector Union (FSU), which described employment contracts issued to some Bendigo Bank technology employees as “draconian”. The union alleged that workers’ conditions would be eroded under what it called oppressive employment contracts proposed by Infosys. FSU represents a diverse group of finance, superannuation, and insurance professionals.More than 100 employees are expected to transition to Infosys as part of the outsourcing deal between the Australian bank and the Indian IT firm. Employee transitions as part of IT outsourcing contracts are common in the industry.Infosys said it is working with Bendigo Bank to strengthen the bank’s capabilities across infrastructure, cloud, cybersecurity, and data and analytics, while simplifying the technology landscape and improving support for the communities it serves.“As part of the engagement, certain roles will transition from Bendigo Bank to Infosys, ensuring continuity of services while reinforcing delivery capability and long-term stability. Together, we aim to build stronger delivery capabilities while continuing to put people and customers at the heart of everything we do. Infosys is an equal opportunities employer and operates in compliance with all applicable laws and regulations across the jurisdictions in which it operates,” Infosys said in a statement.While Infosys reiterated continuity of services and long-term stability, the FSU alleged that under the proposed contracts, Infosys would be able to require employees to work wherever and for whatever hours it deemed reasonable. “The contracts also allow workers’ pay to go backward in the event of a pandemic, recession, calamity, or change in market conditions, while not offering any guaranteed wage increases or reviews,” the union said in a statement published on its website.The union further alleged that Infosys could require employees to provide sensitive medical information when they are ill and could terminate employment on medical grounds.FSU national assistant secretary Nicole McPherson said, “These draconian working conditions may pass the test in other countries where Infosys operates, but Australian workers have fought too hard over many decades to allow the clock to be turned back.”Bendigo Bank serves 2.9 million customers through more than 400 branches across Australia. The bank has announced the next phase of its Productivity Program, including a seven-year technology services partnership with Infosys aimed at accelerating its Strategy 2030 goals.The partnership is expected to strengthen Bendigo Bank’s IT service delivery capabilities while providing access to Infosys’ global software engineering, cloud, cybersecurity, data analytics, and AI talent to support innovation and technology transformation.