An Australian bank has been forced to abandon its new policy requiring workers to install GPS tracking devices in their company cars, after it was found to breach NSW workplace surveillance laws.

In July, Australian Teachers Mutual – a financial institution serving teachers and their families – introduced the GPS tracking devices as part of a new fleet management policy.

The policy was reportedly introduced by the bank for fleet administration, vehicle management, record-keeping requirements, and Fringe Benefits reporting purposes. 

However, the bank was forced to backtrack after concerns were raised with the Finance Sector Union about the legality of the arrangement instructing workers to install the devices in their cars. 

It was also discovered that the devices could not be switched off after work hours or when the vehicles were being used for private purposes, which workers were entitled to do.

The surveillance made many staff whose vehicles were part of a salary package and used for personal travel very uneasy and felt like a ‘gross violation of privacy’, the FSU said.

It was soon discovered that the arrangement was was not consistent with the Workplace Surveillance Act 2005,  which prohibits an employer from conducting surveillance on an employee while they are not at work. 

In July, Australian Teachers Mutual – a bank serving teachers and their families – introduced the GPS tracking devices as part of a new employee car management policy 

The bank was forced to backtrack on the move after concerns were raised to the Finance Sector Union about the legality of the GPS devices, which workers were instructed to install in their cars (stock image) 

It was also suggested that policy could be in contravention of NSW’s Surveillance Devices Act 2007, as well as similar legislation in other states and territories.

Further complicating matters for workers was that the only way to stop the tracking was to uninstall the device – which was a direct breach of the bank’s vehicle policy.

Another complaint raised by workers was the reported lack of consultation prior to the policy’s introduction, which was ‘just presented to staff as something they had to do’.

‘They hadn’t consulted at all, they just bought these things and then their staff were told to install them only to find out it’s illegal in the last month,’ a source said.

Teachers Mutual Bank Limited merged with Australian Mutual Bank in May. It also also operates Health Professionals Bank, Firefighters Mutual Bank, and UniBank as associated brands, and overall has about 280,000 members.

The bank purchased the devices from the company Linxio, which supplies a range of fleet management software and various GPS tracking devices to over 3,500 companies.

According to Linxio’s website, the tools allow businesses to ‘track and manage all your assets with advanced monitoring capabilities and real-time data insights’, through ‘live GPS tracking, historical trip reporting and driver behaviour scores’.

The company’s pricing brochure also states that their fleet tracking software enables real-time location tracking and collates data about driving time, distance travelled, rest periods, and historical routes taken.

‘With Linxio’s software, businesses can actively monitor driving behaviour, including speeding, harsh acceleration, cornering, braking, and idling in real-time,’ the company brochure says.

Finance Sector Union National Assistant Manager, Nicole McPherson, said the rollout only stopped because of the ‘serious concerns’ raised by union members

Linxio supplies a range of fleet management software and various models of GPS tracking devices to over 3,500 companies

Teachers Mutual Bank is now engaged in consultation with the FSU regarding its vehicle tracking practices

A Linxio spokesperson, said they could not comment specifically on the situation at Teacher’s Mutual Bank, but said that its technology did feature privacy controls which enabled tracking and location reporting to be disabled during after work hours. 

However, Linxio indicated that the configuration of these settings, and how employees were consulted, were matters for individual employers.

Teachers Mutual Bank did not respond to detailed questions or repeated requests for comment, but it is understood the bank maintains the devices were not used for performance evaluation purposes.

The bank is now believed to be consulting with the FSU regarding its vehicle tracking practices.

The FSU’s National Assistant Manager, Nicole McPherson, said the rollout only stopped because of the ‘serious concerns’ raised by union members about their invasion of privacy.

‘When employers are considering any new systems to monitor workers, the first step is to talk to the workers concerned and their union. Consultation is critical,’ she said.

Ms McPherson also said that workplace surveillance was a ‘growing problem for all workers’ which was ‘destroying trust’ with employers.

‘This serves as a warning to all employers. Workers’ privacy matters and if any employer crosses the line or breaks the law, the FSU will fight it.’