UP TO 600 Scottish insurance workers face an uncertain future after Norwich Union announced restructuring plans.
Staff working in Glasgow and Dundee will be forced to relocate or accept voluntary redundancy over the next two years, parent company Aviva confirmed yesterday.
The changes will mean 1,800 job cuts across the UK by 2010. In Dundee, 357 out of 425
jobs would be lost and in Glasgow, 237 out of a staff of 570 will have to relocate or accept redundancy packages.
The company said that jobs will be created at Bishopbriggs and Perth and some workers will be able to relocate.
However the union Unite said workers were angry about the "devastating" scale of the job cuts.
Graham Goddard, Unite general secretary, said: "Unite is angry to learn that Aviva is to cut 1,800 jobs across the country. This news for staff that their jobs are now in jeopardy is truly devastating."
The insurance company, Britain's largest, employs 30,000 people in the UK, with around 18,000 staff working in 52 towns and cities.
Aviva said its Norwich Union Insurance operations had become complex, with too many products, processes, systems and locations.
The insurance company stressed there would be no compulsory redundancies and that some workers would be able to relocate, but union representatives pointed out it would be difficult for many people to move.
Mr Goddard said: "The business changes will impact some 22 locations across the country. The Aviva workforce from the general insurance arm now faces uncertainty about their future.
"Unite the union will now be meeting with management in order to discuss the implications of this news and ensure that staff are fully supported throughout the distressing process.
"Aviva general insurance is rapidly withdrawing their commitment to local communities and isolating themselves in a small number of cities. The suggestion that employees will be able to relocate appears to be inconceivable for most of those affected."
Igal Mayer, chief executive of Norwich Union Insurance, said: "We are a very strong business that has grown over the years into a complex organisation.
"We want to deliver excellent, consistent and reliable customer service with market-leading efficiency. To achieve this, we will need to fundamentally simplify our business, consolidating our expertise into seven insurance centres of the future in the UK."
Yesterday MPs and MSPs for Dundee expressed disappointment to hear of the loss of jobs in the city.
Jim McGovern, Labour MP for Dundee West, said: "I'm sad to hear of any job losses in my constituency. There have been too many bad news stories about job losses in Dundee. But I have been assured there will be no compulsory redundancies."
Joe Fitzpatrick, Dundee West MSP, said: " I am really disappointed at the news although I am glad there are to be no compulsory redundancies.
"There will undoubtedly be some staff who will have problems with commuting to work in Perth and I would want to know what efforts will be made to help them."
The full article contains 508 words and appears in The Scotsman newspaper.
