IAG’s decision to cut 214 jobs at a time of record profit growth, and from a CEO who last year received a 78% pay rise, has disgusted workers, and will result in harm to IAG customers.
The FSU has been advised of 214 jobs to be cut in the Direct Insurance Australia and Intermediated Insurance Australia divisions, including roles that support digital business, direct claims, distribution and underwriting.
IAG recorded insurance profits of $1.42 billion in 2023/24, up 79.1 per cent from the previous financial year.
“IAG is Australia’s largest general insurer and has no business need to cut these jobs given its record profitability. If it’s good enough for CEO Nick Hawkins to get a 78% increase in pay to $5.23m in 2023/24 then it’s good enough for IAG to continue employing its hard-working staff,” Julia Angrisano, National Secretary, Finance Sector Union said.
“Make no mistake, the IAG Board have chosen to put profits ahead of their workers and in doing so are disrespecting loyal IAG staff who’ve stuck by the insurer in tough times. Whether it was during COVID, or to assist customers during times of natural disasters, IAG workers have consistently stood by the company, taking on extra hours and being more productive. To reward that loyalty by cutting jobs is disgraceful,”
“Last month when IAG CEO Nick Hawkins reflected on the strength the IAG business, he acknowledged that those strong results came off the back of the hard work of IAG staff. How is showing staff the door an appropriate way to repay their loyalty, and their contribution to the profitability of the business?”
“As well as concern for their own jobs, our members are worried about the impact on their customers. Job losses have flow on effects with remaining staff likely to face increased workloads, and customers who may be forced to wait longer to have their policies or claims dealt with,”
“We’re calling on the IAG Board to reconsider this decision and think of the impacted workers who are facing an uncertain future. IAG has cut jobs at the same time as workers are struggling with cost-of-living pressures- exacerbated by insurers like IAG who are keeping inflation higher than it should be due to hiked up premiums.
Media contact:
David Imber, 0413 274 204 or [email protected]
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