Union warns Hibernian over plan to cut jobs

THE TRADE union representing Hibernian workers warned yesterday that it could take the insurance group to the Labour Court over its plans to transfer 580 jobs to India.

Hibernian announced earlier this week that it intended to shed 580 out of 2,200 jobs from its operations and transfer them to Bangalore, India, in an attempt to cut costs.

The jobs are mainly in back office and support services.

However, Jerry Shanahan, national officer of Amicus-Unite, which represents the workers, told The Irish Timesyesterday that the union was opposed to any plans that involved cutting sustainable jobs in Ireland.

He said the issue could go to the Labour Court or Labour Relations Commission if the union and management failed to agree.

"We're adamant and the company is adamant, so it could very well happen," Mr Shanahan said yesterday.

In the event of a dispute, unions are obliged to use the State's industrial relations machinery before considering the option to strike.

Mr Shanahan and other officials met Hibernian management yesterday to discuss the plans.

The union argues that there could be other ways of achieving the savings being sought by the company.

Mr Shanahan also said wage inflation in India meant the savings that the group could achieve were about 25 per cent, a gap he said the union believed could be bridged.

Mr Shanahan said a number of financial services companies that had transferred jobs to India were repatriating them as they found there was a huge turnover of workers there.

Most of the affected Hibernian workers are employed in the company's offices on Hatch Street, Dublin.

Hibernian employs 2,200 staff, but expects to reduce this to 1,600 in a reorganisation that will take three years.