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York-based Aviva Announces 2,000 Job Losses World Wide

Minster FM News Generic

12:51pm 18th April 2013
(Updated 4:31pm 18th April 2013)

Around 2,000 jobs are being cut from insurance company Aviva.

The firm employs around 3,000 people in York.

The cuts, which are from their offices around the world, make up about six percent of the workforce.

It's as the firm tries to save around £400 million, in a statement Mark Wilson, Group Chief Executive Officer, said:

“I know this is difficult news for our employees but these changes are essential if we are to remain competitive. Aviva needs to become a more efficient and agile organisation to unlock its potential. We must take tough decisions on costs to provide our customers with great value products and ensure our future success. I am determined that Aviva gets through this phase of our business transformation as quickly as possible.”

Aviva has also communicated today that it has reviewed its employment policies and practices to ensure that they are effective and competitive in today’s market environment. As a result, Aviva has decided to introduce a revised redundancy policy for all employees on UK contracts. This will bring Aviva’s redundancy terms in line with market practice in the UK which will remain significantly above the statutory provisions.

Importantly, the changes to redundancy terms will be implemented in two phases so that those impacted in the next six months will still receive the current four weeks’ redundancy pay for each year of service. This is intended to minimise the impact on employees and follows consultations with Aviva employee forums and Unite.

Unions have reacted angrily, Unite national officer, Dominic Hook said:
"Once again finance staff are being forced to pay the price for boardroom failure. Aviva has also announced plans to slash redundancy pay, with longer serving staff losing more than a quarter of their entitlement. To cut redundancy pay so drastically when there is deep uncertainty over job security is a callous and disgraceful act.
"Since the departure of ceo Andrew Moss less than 12 months ago, the UK workforce, which is the backbone of the company, has suffered job cuts, pay freezes and now faces an attack on their redundancy terms, when the company is planning more cuts. Unite will give staff all the support possible to oppose any job losses in the UK and the cuts to redundancy terms."
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