IAG says it expects to fill 15-20 new roles at the same time as it makes 54 current roles redundant in finance, risk and human resources. 

While 54 Enterprise Agreement covered roles are impacted by redundancy, “separately, other roles are being repointed to the business to bring activities closer to customers to help drive business performance,” IAG told the Financial Services Union (FSU). 

“These are not redundant roles,” the insurer said. "At this stage we estimate around 15 new roles being created, although the exact number is yet to be confirmed. 

“We estimate that 15-20 people will be directly appointed and/or successful in obtaining another position through closed selection.” 

If there is suitable alternative employment, as defined by the IAG Enterprise Agreement, impacted employees will be directly appointed into those roles and will not need to apply through a selection process.  

In addition, impacted employees will have the opportunity to explore other open positions for redeployment across IAG during their three-month job search period.  

Asked if IAG is looking for a 10% cut in overhead, the insurer said “this is not correct,” and "currently there are no further changes proposed in August”. 

IAG says it continues to look at the structure in line with commercial imperatives, and will continue to consult where appropriate. 

IAG says it supports people through various redeployment opportunities, including direct appointment which occurs when an affected employee is selected for a newly created role due to their experience, skills and capability and there is only one clear employee with the necessary experience, skills and capability to perform the proposed new role. 

"The proposed changes aim to create a simpler IAG. There will be a focus on our core insurance businesses and we aim to remove activity that is not fully aligned to our core priorities. This means that we are going to look at what activities will stop, what will transfer and what will reduce,” IAG said. 

“This will help create resource capacity that will enable us to accelerate the delivery of our big transformation programs of work and will ensure we are lower cost organisation as we enter 2024.” 

The aim is to have faster, better and more informed decisions, it says. 

Asked for further rationale provided about moving workers from Finance to Direct Insurance, IAG said a number of teams were moving into its insurance divisions to more closely align these operations with the customers in these areas.  

“The changes will bring activity and decision-making closer to the customer, where they can control the levers to drive business performance. The aim is to have faster, better and more informed decisions made in each of our insurance divisions.”  

Once consultation concludes, staff that are being offered suitable alternative employment or other continuing employment will receive this in writing as part of the confirmation process, IAG says. 

FSU National Secretary Julia Angrisano says a lack of detail is creating uncertainty and anxiety and the FSU is “concerned IAG is not being totally transparent about its restructuring plans”. 

“Workers deserve to know what’s going on at IAG,” she said. "We are assisting any member who has been directly impacted by these job cuts as well as supporting those who are left to carry the additional workloads.” 

Closed selection is used when there is a reduction in comparable roles and selection decisions cannot be made purely on an employee’s performance, experience, skills and capability alone and requires employee involvement, usually via interview.  

Open selection is used for newly created roles which will be advertised and open for application to all IAG employees, although IAG says preference will be given to impacted employees who can reasonably satisfy the job requirements or do so with the provision of reasonable training.  

IAG also says it would consider any requests for voluntary redundancy on a case-by-case basis.