Further to the announcement from Aviva that 1,250 jobs were to be cut from its Irish operations, The Company, which employs over 2,000 staff in Ireland, have since declared that no jobs will be lost before March 2012 and that the full implementation of the redundancy programme could take up to two years..
This announcement was made following a consultation with the UNITE trade union along with details of where the jobs will be lost. It is expected that a potential 950 jobs will be lost from Ireland and an additional 300 will be outsourced. The IT, claims and operations divisions are expected to be the hardest hit by these losses, as well as those based in the branches all over the country.
Management at Aviva have however stated that no decision has been made on the closure of its 26 branches but each branch will be separately examined and a final decision deferred until next summer. The Company have said in a statement that the insurance business had suffered in the recession, with Aviva losing market share, and that the Company had to address its cost base
This follows a discussion document for the Aviva board, being leaked, that outlined its plans to operate the Irish business as a region of the UK operation. It is expected that IT, HR and Finance would all be centred in the UK and that 126 jobs would be lost in direct sales and service. Reports also suggest that the claims department will lose 107 jobs and business development managers will fall by over 50%.
However, senior sources told the media that this discussion document was never presented to the board and only contained proposals. The document included a proposal to close the entire branch network with the loss of 126 jobs and to move its business to a combination of online delivery and sales through brokers. According to the plan essentially Aviva in Ireland would operate as a branch of its UK operation and products would be based on what is on offer in the UK.
It is anticipated that the Company’s health insurance division in Dublin, Cork and Galway as Aviva is looking to grow this market. The company is however looking to outsource its life and pensions business, and it is expected that a decision will be made on this early 2012.
Whilst the UNITE trade union welcomed the decision that no process would be enacted until March 2012, 90% of union members have voted in favour of taking escalated industrial action to prevent the movement of jobs ahead of agreement with the Company. Regional Officer Brian Gallagher has also stated publically that they will question the analysis behind the movement of these jobs and seek to maintain the maximum number of long term sustainable jobs in Ireland, and that this process of analysis, engagement and negotiation can now commence, fully six months after the initial rumours of the potential job losses began.
You can expect this battle to continue and with the threat of industrial action there will be more twists and turns in the road ahead for both the unions and Aviva.
Employers should seek advice from Peninsula Business Services when faced with any query in respect of redundancies and the correct procedures to follow. Please phone the 24 Hour Advice Service on 01 855 5050 and one of our experienced advisors will be happy to assist.
