IAG job cuts a sign of wider malaise?
The increased prevalence of natural disasters and the global credit crunch are putting strain on the insurance industry, a union leader believes.
Finance Sector Union (FSU) National Policy Director Rod Masson says the union hopes IAG’s decision last week to cut 600 jobs is unique and will not be repeated across the market.
He told insuranceNEWS.com.au issues such as a shortage of skilled workers, credit pressures, a downward turn in the economy and offshoring are starting to affect the industry.
“There are a few black clouds around at the moment but what we need to do as an industry is find innovative solutions for the long term, not just short-term cost-saving measures, because in the end they might hurt us more than help us,” he said.
Finance Sector Union (FSU) National Policy Director Rod Masson says the union hopes IAG’s decision last week to cut 600 jobs is unique and will not be repeated across the market.
He told insuranceNEWS.com.au issues such as a shortage of skilled workers, credit pressures, a downward turn in the economy and offshoring are starting to affect the industry.
“There are a few black clouds around at the moment but what we need to do as an industry is find innovative solutions for the long term, not just short-term cost-saving measures, because in the end they might hurt us more than help us,” he said.