Aviva sends 200 jobs to India despite €40m deal
Published 14/05/2010 | 05:00
THE insurance company that paid €40m for the naming rights to the redeveloped Lansdowne Road stadium has outsourced around 200 jobs to India.
The revelation comes as Taoiseach Brian Cowen today prepares to perform the high-profile opening ceremony for the new Aviva Stadium.
Back in June 2008, the company -- then known as Hibernian Insurance -- announced plans to ship some of its jobs to an outsourcing firm in Bangalore in India over the following three years due to the "financial pressures" in the Irish insurance market.
The company last night confirmed its workforce has since dropped by 200 to 2,000, with some insurance policy processing and call centre activities transferring to India.
Although Aviva said its workforce numbers were likely to grow, there is an internal agreement with workers' union Unite to potentially outsource a further 150 jobs.
This would bring its overall workforce in Dublin, Cork and Galway to 1,850.
Aviva has agreed to pay around €4m per year over the next 10 years for the naming rights to the Aviva Stadium, built for the IRFU and the FAI at a cost of up to €365m.
However, Unite national organiser Gerry Shanahan said the Aviva workers were glad to have preserved as many jobs as possible through the outsourcing agreement.
There are around 1,350 Aviva staff in Dublin, another 300 in its motor insurance call centre in Galway and 200 in its health insurance arm in Cork. The remainder are based in its branch offices around the country.
Mr Shanahan said there were specific guarantees in the outsourcing agreement about the number of jobs to be retained.
"Originally they were looking for 580 but we cut them right back to around the 400 mark. We reached agreement that we would maximise sustainable jobs at 1,850," he said.