Unions angry over insurance job cuts

Officials from unions have been angered by a decision by insurance giant Aviva to cut eighteen hundred jobs around the country. Just two years ago the company moved part of its operation to India, and ended up cutting around four thousand people from the workforce. This latest announcement has further angered union officials. Officials from Aviva say that the move is designed to improve service and cut costs, but this has not impressed unions.

By growing the business whilst cutting costs Aviva hopes to double the returns for shareholders by 2012. Union officials are now nervous that rival firms could also follow suit by announcing job cuts, particularly in the current financial and economic climate. Insurance operations for Aviva will not be focused in a handful of cities. This includes Norwich, Perth, Glasgow, Manchester, Leicester and Southend. Officials state that it will take two years for the redundancy process to be completed, and wherever possible staff members will be offered the chance to move to another site.

One industry official described the insurance firm’s decision to cut so many jobs as ‘brutal’, adding: ‘Aviva is rapidly withdrawing their commitment to local communities and isolating themselves in a small number of cities. The suggestion that employees will be able to relocate appears to be inconceivable for most of those affected.’

One official from Aviva did not express any concern over the loss of jobs, but simply stated: ‘We are a very strong business that has grown over the years into a complex organisation. We want to deliver excellent, consistent and reliable customer service with market leading efficiency. To achieve this we will need to fundamentally simplify our business.’

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