Hibernian staff vote for industrial action

Staff at insurance group Hibernian have voted for industrial action following the company’s recent announcement that it is to…

Staff at insurance group Hibernian have voted for industrial action following the company’s recent announcement that it is to shed 580 jobs.

The company announced the loss of the jobs last month, which it said was part of a restructuring plan that will see them transferred to India where its parent company, UK insurer Aviva, has an operation.

In a statement today Unite - the union which represents 1,600 Hibernian staff - said there is now a mandate from staff for non-cooperation with the current proposals.

The union's national officer John Shanahan said the news that Aviva have sold their operations in India to Mumbai-based services giant WNS, makes the decision even more relevant.

Mr Shanahan said the union was also mandated to organise one hour stoppages to highlight that the current proposals are not acceptable. He said creative solutions to any cost or profitability issues can be dealt with in Ireland.

Unite was involved in successful relocation plans with some of Hibernian's biggest competitors including to Wexford with Eagle Star, Kilkenny for VHI and the Allianz move to Donegal.

But Hibernian said it has already ruled out this possibility after an analysis of its options.

"The decision to reorganise business in Ireland was taken after considerable analysis of the challenging commercial and economic conditions and all of the options open to Hibernian including relocating within Ireland," a Hibernian spokesman said.

"The result showed clearly that gradually moving roles to India, and preferably without the need to make staff redundant, was the best outcome for long-term sustainability and growth for Hibernian". 

The company has said 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 workers threatened by the restructuring scheme are based at the company’s offices on Hatch Street, Dublin, which only opened fully just over two years ago.

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However, Mr Shanahan said in light of the mandate by Unite members, it was up to management to begin negotiations with a view to reaching an agreement.

He called on the Minister for Enterprise, Trade and Employment Mary Coughlan to support the union's campaign to stop the "unnecessary flight of jobs off this island."

Additional reporting PA