29 insurance jobs axed

Press, 23 February 1989, Page 3

29 insurance jobs axed

By

BARRY CLARKE

Twenty-nine insurance workers throughout the country lost their jobs yesterday in the wake of the planned merger between the New Zealand Insurance and General Accident companies. The redundancies bring the total number of jobs axed over the last three weeks to 58, as part of a rationalisation programme by the two companies. N.Z.l.’s profitability has suffered over the last year. This week it was briefly suspended from trading on the Stock Exchange over a stock issue, a move the company described as “over-reaction.”

Six of yesterday’s job losses were in N.Z.I. and General Accident’s Christchurch offices, and one in Timaru. Those made redundant were clerical workers and sales representatives.

Twenty-two were in Hamilton, Taranaki, the Bay of Plenty, Hawke’s Bay and the Manawatu. They will receive five weeks notice, six weeks

pay for the first year of service, and two weeks pay for each further year of employment.

Eight other employees in Christchurch and Timaru have been offered early retirement under a different severance package. Their redundancy deal was agreed to by the Insurance Union last week after industrial action against the companies.

The union’s chief executive, Mr Graeme Ogilvie, said that apart from a handful of people who have been offered different positions within the companies but might opt instead for redundancy, there were unlikely to be more job losses.

"Generally, the insurance business has been im a bit of a price squeeze which ’has forced companies to cut back,” he said.

“This really is a result of that.”

Mr Ogilvie said the severance deal was not as much as the union had hoped for.