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Quinn Insurance Limited announces consultation process for redundancy programme affecting 900 people
Friday 30th April, 16.30
THE Joint Administrators of Quinn Insurance Limited (Under Administration) today (FRIDAY) announced that the company is beginning a consultation process on a proposed redundancy programme affecting approximately 900 people.
Paul McCann and Michael McAteer said that they “deeply regretted” that a major restructuring of operations is necessary to both safeguard the future of the company and more than 1,500 jobs across nine centres.
“This is a difficult announcement to make and a considerably more difficult announcement for the workers of Quinn Insurance to hear. The scale of what we face is considerable,” said the Administrators.
“Unfortunately, this process is necessary in order to sustain and grow a viable insurance business. While the exact number of employees that will be impacted over the next 12 months will depend on the actual business volumes achieved, it is very important to stress that our customers, both current and new, will have a direct impact on the employment levels within the business.
“We will continue to engage proactively with the Financial Regulator, and monitor business activity, in order to allow profitable business lines in the UK to be reopened. Certain loss-making lines of business will be discontinued entirely.
“We find ourselves with no alternative other than to commence a consultation process with employees on a proposed redundancy program that will potentially affect around 900 employees. This represents 37 per cent of current staffing levels, over a 12-month-period across all locations. Approximately 350 employees will be affected across all locations in the first phase of the process.
“It is our intention that all redundancies that we are seeking be achieved voluntarily. The details of the packages on offer will be outlined through consultation with the Quinn Employee Representative Committees. Basic conditions will include four weeks pay per year of service on top of the usual statutory entitlements.
“We have been greatly encouraged by the significant support given to the company since our appointment just over one month ago. The more people that continue to support the company the more positive the outcome will be for the workers.
“It is difficult to determine the exact impact on the business over the next 12 months. The restructuring process has taken into consideration a business plan which, we are confident, is realistic in the context of what is known and expected about conditions in our markets.
“Quinn Insurance is a significant operator in the insurance market and will continue to employ over 1,500 people following completion of the restructuring process. The steps being taken today, although regrettable and painful for the employees of the company and their families, are necessary to ensure the long term security of these positions.”
-ENDS-
CONTACTS
Karl Brophy, Hume Brophy + 353 1 6624712 / +353 (0)86 0440253
karl.brophy@humebrophy.com
Maria Cryan, Hume Brophy +353 1 6624712 / +353 (0)86 7749715
maria.cryan@humebrophy.com
Deirdre Grant, Hume Brophy +353 1 6624712 / +353 (0)86 0484279
deirdre.grant@humebrophy.com
Dualta Redmond, Hume Brophy +353 1 6624712/+353 (0)86 0247381
dualta.redmond@humebrophy.com
NOTES TO EDITORS:
1. Current total workforce of Quinn Insurance Ltd is 2,452.
- Cavan: 706
- Derrylin: 75
- Enniskillen: 562
- Navan: 196
- Blanchardstown: 794
- O’Connell Street: 12
- Manchester: 97
- London: 10
2. Projected redundancies are as follows:
Cavan Office: 226 redundancies expected, covering all areas and grades over a 12 month period with 121 in the first phase
Derrylin Claims Division; 27 redundancies expected, covering all areas and grades over a 12 month period with 9 in the first phase
Blanchardstown; 301 redundancies expected, covering all areas and grades over a 12 month period with 65 in the first phase
O’Connell St; 4 redundancies expected, covering all areas and grades over a 12 month period with 2 in the first phase Navan; 109 redundancies expected, covering all areas and grades over a 12 month period with 37 in the first phase
Enniskillen; 179 redundancies expected, covering all areas and grades over a 12 month period with 87 in the first phase
Manchester; 48 redundancies expected, covering all areas and grades over a 12 month period with 24 in the first phase
London; 6 redundancies expected, covering all areas and grades over a 12 month period with 5 in the first phase
3. The company will be meeting members of the Employee Representative Committee (ERC) on 4 May to commence the formal process of consultation with employee representatives.
4. The formal consultation period will be in line with statutory requirements for ROI and for NI/UK and the company is fully committed to engaging with employees and the ERC during this period, in line with legal obligations.
5. The principles which will govern these consultations will include:
Voluntary Led: The company is committed to ensuring a voluntary-led process to achieve the employee reductions and will look to exhaust all the voluntary options available to it during this period. If it is not possible to achieve the requisite numbers through a voluntary process the company will then discuss a framework for compulsory redundancies with the ERC.
Quinn Insurance will provide an ex-gratia severance package of 4 weeks pay per year of service plus statutory redundancy entitlement.
The definition of a week’s pay will include average weekly earnings (which will include bonus) in the 12 months from April 2009-March 2010.
For employees who volunteer to exit with short service and who do not qualify for statutory redundancy the following ex-gratia payments will apply;
- > Post Probation -1 year’s service; an ex-gratia payment of 4 weeks’ pay
- > 1-2 years’ service; an ex-gratia payment of 8 weeks’ pay
Supporting our People; The company is committed to introducing a range of supports to ensure that staff who exit will maximise their chances of securing alternative employment and we will discuss this in further detail with the ERC.
Phased over a 12 month period; The restructuring programme envisages a phased implementation of redundancies over a 12 month period. This will provide some time for employees to adjust to the new situation and hopefully secure alternative employment.
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