FED: QBE sacks 83 before Christmas: union = 2

AAP General News (Australia)
12-09-1999
FED: QBE sacks 83 before Christmas: union = 2

A major insurance company set to retrench 83 workers in four capital cities around
Australia tomorrow said today the decision was made with the employees' interests in mind.

QBE Mercantile Mutual general manager Terry Ibbotson said the company had decided to
retrench the workers a fortnight before Christmas Eve "for their benefit".

The Finance Sector Union (FSU) said today the company had told staff it planned to
retrench 31 employees in Sydney, 24 in Melbourne, 18 in Adelaide and 12 in Brisbane -
equivalent to more than 10 per cent of its 800-strong workforce.

The union's NSW-ACT branch secretary, Geoff Derrick, said staff targeted for retrenchment
had been ordered by management to pack their belongings and told they would be escorted
out of the office by close of business tomorrow.

"The company's decision to sack 10 per cent of its workforce on the eve of Christmas
is heartless and irresponsible," Mr Derrick said.

"Staff with over 20 years' service are being marched out of the workplace and sent
home to tell their families that they have lost their jobs just two weeks before Christmas,"

he said.

Mr Derrick said the sackings were particularly appalling given that QBE and Mercantile
Mutual had made a combined profit of $190 million last year.

The job losses follow the creation in April this year of a new company as a joint venture
between QBE Insurance and Mercantile Mutual.

"We unfortunately, with great regret, retrenched 83 staff today," Mr Ibbotson said.

"Because of the establishment of the joint venture we have a duplication of head office
and branch networks."

A company freeze on staff hiring and natural attrition, through resignations, throughout
the year had accounted for most of the 400 positions no longer needed.

"We have been able to minimise the retrenchments to just 83," he said.

But Mr Ibbotson said the decision to retrench staff before - rather than after - Christmas
was made with the employees' interests in mind, so they were aware of their future financial
position.

"The decision was made for the benefit of staff," he said.

The FSU is planning to lodge a dispute application over the retrenchments with the
Australian Industrial Relations Commission and is considering further action with its
other members within the company.

Mr Derrick said the company's move would also have a negative impact on other QBE Mercantile
Mutual employees.

AAP km/tsm/sub/br

KEYWORD: QBE 2 SYDNEY

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