Representatives of the Unite trade union and senior executives at Aviva met this morning to discuss reports the insurance company is finalising restructuring plans that could see the loss of up to 500 jobs in its Irish business.
The insurer is said to be drawing up a major restructuring plan with Irish staff being told to expect an announcement as early as next month.
The company is understood to be considering relocating part of its general insurance business to the United Kingdom, where its European headquarters is based. This headquarters is said to have been playing an increasing role in the Irish division.
Unite trade union officials have been told by Aviva management that no decision has yet been made by the company, and although the conversations between the union and the company were “business like and friendly”, no timetable was provided as to when a decision might be reached.
Unite officials said they asked for a denial of the rumoured job cuts but did not receive one.
“We’ve now requested that briefing staff on the plans to date is given top priority,” said Unite regional manager Brian Gallagher. “It is unfair to expect staff to operate in a vacuum when they do not know if they will have jobs in a few months' time.”
Mr Gallagher said union members were angry the story came to light before any indication of possible cuts had been passed to the staff. “Morale is on the floor. Our members are trying their best to lift the business under difficult circumstances, and this lack of communication from management is very poor.”
Last night, RTÉ's Primetime programme said correspondence it had seen showed that between 300 and 500 jobs are under review.
In a statement Aviva said that given the difficult economic circumstances in Ireland, it was considering various options to ensure it has a sustainable and competitive business. The company said its review was still under way and it was too early to speculate on the final outcome.
Taoiseach Enda Kenny said he did not want to comment until Aviva makes its position clear.
“The IDA, who are in contact with Aviva, cannot make any sort of judgment about the future until such time as the company itself makes its own decisions in respect of its review which it’s carrying out,” Mr Kenny said.
Asked about the potential job losses Minister for Enterprise Richard Bruton said that he had “heard rumours” about them.
Sinn Féin TD Mary Lou McDonald accused Mr Kenny of passing the buck to a Government agency.
“You talk big, you act small. I don’t accept your position that you have had no contact with Aviva. You pass the buck to the IDA,” she said. “Hundreds of jobs are now under threat. What will you do about it?”
The Aviva Group in Ireland comprises Aviva Insurance Europe SE, Aviva Life and Pensions Ireland Limited, Aviva Health Insurance Ireland Limited and Aviva Investors Ireland Limited and has offices in Dublin, Cork and Galway.
The meeting started at 8.30am. Unite said the union would be seeking assurances on security of the jobs for the more than 2,000 Aviva employees in Ireland. The union represents a large number of staff at the company.
Regional secretary Colm Quinlan said there were concerns that a greater number of jobs will go than were initially created. “Job losses of that scale would devastate the organisation,” he said.
Mr Quinlan said the union had been waiting since June for details of what the impact of a relocation would be in terms of job numbers. “Nothing specific has been put on the table in front of us yet,” he said.
“We did receive assurances that when specific plans were known, we would be the first to know, but unfortunately those assurances have proved to be very hollow again.”
Additional reporting: PA
