News of the return of Bank of Melbourne to Victoria, along with plans to create 800 new jobs over the next five years has been welcomed by the Finance Sector Union.

“Bank of Melbourne was highly valued by the Victorian community and it was disappointing when the brand was swallowed up by the Westpac Group,” said FSU National Secretary Leon Carter.

“Opening more branches and ATMs, and employing more staff to meet the needs of the community is good for customers and bank workers.”

Victorian employees of St George Bank will work for the Bank of Melbourne when St George branches are rebranded in August. The union has also sought assurances that employees working for Westpac will not be affected.

“Importantly, we have received a commitment from the Westpac Group that current St George Bank employees in Victoria will maintain their union negotiated employment conditions, and it is envisaged that new employees of Bank of Melbourne will also enjoy the benefits of the existing collective Agreement,” said Leon Carter.

“The FSU also welcomes the banking group’s commitment that there will be no reduction or closure of Westpac branches in Victoria as a result of today’s announcement.”

“We look forward to working with the bank to help ensure a smooth transition to the new Bank of Melbourne,” said Leon Carter.

On Thursday, Westpac said it would relaunch the Bank of Melbourne brand in Victoria, targeting to build 100 branches over the next five years, as well as setting up 300 automatic teller machines.

Before the end of this year, the bank will open 14 new branches including outlets in Fitzroy, Richmond, Carnegie, and in Melbourne CBD. Moreover, St George Bank branches in Victoria will be converted to the Bank of Melbourne brand.

"Our customers and the market have told us that they want a local bank, one that is really engaged in the local communities in which it operates," Bank of Melbourne chief executive Scott Tanner said in a statement.