CGU and Aon look at restructuring

Email Print

6 February 2012

Staff at commercial insurer CGU and broker Aon are waiting to see if recently commenced corporate restructures will result in redundancies.

CGU Insurance says it has started a corporate restructure but says placing a number on job redundancies at this stage is premature. Meanwhile, it’s understood Aon is also preparing to announce internal changes.

Estimates provided to insuranceNEWS.com.au by industry sources suggest large cuts in mid-level management positions are possible at CGU, while broader redundancies are more likely at Aon.

A spokesman for Aon didn’t respond to insuranceNEWS.com.au in time for publication.

CGU spokesman Sean Sampson says it’s too early to tell how many jobs at the Melbourne-based insurer might be affected.

“CGU is making changes to its operating model to improve the way it services its intermediaries and customers, and make it easier to do business with us,” Mr Sampson said.

“We are still in the early stages of these changes and are working through what they mean for our people and business partners. We’re committed to sharing more information about decisions as they are made.”

Financial Services Union Communications and Campaigns Officer Leanne Shingles says it is highly unusual for CGU to undertake a large restructure without involving the union.

“Under the terms of their enterprise bargaining agreement they have to consult with workers and the union,” she said. “It’s either not happening or it’s outside the terms of the enterprise agreement.”