10,000 financial jobs’ risk

A LEADING trade union has warned up to 10,000 jobs in financial services could be lost as many companies move parts of their businesses to low-cost economies.

According to Amicus- MSF, 10,000 jobs could be lost over the next five years in Ireland, as companies relocate key services to low-cost economies taking jobs in the finance sector with them.

The union is writing to Tánaiste Mary Harney seeking an urgent meeting to discuss the issue and to examine what measures the department is putting in place to protect Irish jobs.

Workers in the financial services sector, and especially those working in call centres face an uncertain future.

Multinational companies are relocating a number of key services to low-cost economies in Asia in a process known as ‘offshoring’.

“Research indicates that unless action is taken now approximately 10,000 Irish jobs could be axed over the next five years as this trend becomes widespread,” according to Amicus deputy national secretary Jerry Shanahan.

A report by consultants Deloitte recently said that over the next five years around two million financial services jobs in western Europe will have moved to Asia.

Offshoring is now a common practice among prominent companies in Britain, many of whom have operations in Ireland, Mr Shanahan said.

He pointed to Prudential, Royal Sun Alliance and Aviva (owners of Hibernian Insurance), who have moved substantial operations offshore, mainly to India and the Pacific Rim.

“It is high time the Government and policy makers recognised this threat and devised a coherent response to protect Irish jobs,” Mr Shanahan added.

Amicus said thousands of Irish workers in this sector who do not have union protection will be the most vulnerable.

It said it has been successful in Britain in preventing compulsory redundancies.