INSURANCE GROUP Hibernian is cutting 580 jobs - more than a quarter of its workforce - over three years under a restructuring plan and is moving them to India where its parent company, UK insurer Aviva, has an operation.
The company announced yesterday that the first 80 jobs would be transferred to Bangalore, India, from Hibernian's offices in Dublin, Cork and Galway in the first three months of next year and a further 500 positions were "likely to move" over the three-year period.
Most of the job losses will occur in the firm's offices on Hatch Street in Dublin, and will be backoffice and support services positions, the insurer said.
The number of employees in Cork and Galway was "not expected to change materially".
The company employs 2,200 but this will fall to about 1,600 after the three-year restructuring.
Unite, the trade union representing the majority of Hibernian's staff, expressed its "shock and anger" that "a significant number of sustainable jobs" could be "transferred out of Ireland".
Speaking after a meeting with management yesterday, Unite national officer Jerry Shanahan said: "Today's news is a hammer blow to staff who have dealt with two previous re-organisations of the company in 2000 and 2004, and who have been wholly accommodating in the development of significant operations outside Dublin, in Cork and Galway."
Hibernian said it expected to reduce its workforce in "a phased manner" by minimising external recruitment and "through retraining, redeployment, normal staff turnover and other voluntary methods". The company's headquarters will remain in Dublin, while the firms' call centre for general insurance will be Galway. Its Cork office will handle technical underwriting and claims.
Stuart Purdy, group chief executive of Hibernian, said the company had an annual staff turnover of 15 per cent which would allow staff to move to vacated positions.
The company said Hibernian Health, which was launched this month following the company's acquisition of a 70 per cent stake in health insurer Vivas, would "also provide some new career opportunities for employees".
Mr Purdy said: "In common with all businesses in today's economic environment, it is imperative that Hibernian operates even more efficiently to provide best value and service to customers."
He said Hibernian was focusing on growing its business and reducing costs, and that the review predated the economic slowdown.
He said sales in the life business were down 20 per cent this year, while motor premiums have halved over the last six years.
"It is an immensely competitive market in Ireland . . . we have to be as efficient as possible."
Labour spokesman on enterprise and employment, Willie Penrose TD, said the job losses were "a clear indication that the Government is sleepwalking into a calamitous economic situation".
He said: "While we have become accustomed to hearing about redundancies in the manufacturing and construction sectors, job losses on this scale in the financial services sector will set alarm bells ringing."
