Clarification of incorrect statement that appeared in The Australian Financial Review

9 January 2003

The Bank today forwarded the following Letter to the Editor of the Australian Financial Review:

"I refer to an article published in this morning’s edition under the headline "Union takes CBA to court over sackings" and would like to correct a statement contained therein.

The article states that a Bank spokesman agreed that "employees were sacked for reasons other than the need to axe jobs". This is incorrect. It was explained to your journalist that the redundancies that took place in mid 2002 were as a result of a restructure of the Bank’s retail banking network.

At the time of the restructure, around 500 positions, excess to the Bank’s requirements, were abolished and this resulted in excess staff in the network. A significant number of these staff were able to be redeployed. Staff who were unable to be redeployed received the Bank’s generous redundancy payments.

As rightly pointed out by the journalist, the matter is to come before the Federal Court. The Bank believes that it has acted in accordance with the obligations under the EBA and will defend the general claims and assertions made by the FSU in the appropriate place."