Union: Proposed AMI store closures a blow to communities

Wednesday, 24 June 2020

Up to 65 branch manager roles have been axed as 53 AMI store closures are confirmed by owner IAG New Zealand.

First Union says insurance giant IAG is being 'irresponsible and short-sighted' with plans to close all 53 of its AMI stores.

National organiser for finance Callum Francis said big companies like AMI were using the Covid-19 crisis to justify business decisions that harmed workers and communities.

The move threatened to jeopardise the rebuilding of local economies after the pandemic, he said.

“We have to call it what it is.”

* Insurance company IAG propose to close all 53 AMI stores

* The Warehouse threatens to close 'bottom-performing' store

On Tuesday IAG announced it was looking at a proposal to close 53 AMI stores and its one remaining State store.

Up to 65 retail jobs could be lost from Whangarei to Invercargill, alongside general proposals for redeployment, Francis said.

“We know our stores have been a part of their local communities for many years, so the proposal to close them has not been taken lightly,” says IAG's Kevin Hughes.

The union was worried that other financial services firms, including banks, were already considering similar proposals that could see thousands of job losses from the regions.

'We're calling on all those self-proclaimed 'champions of the regions' in Parliament to step up and call this what it is before IAG gets away with it scot-free and sets a terrible example for everyone else in the industry to follow.'

Like others in the sector IAG was looking to ride the 'digital-first' wave but was taking proposals beyond what was necessary to meet an increased customer preference for digital services, he said.

Spokeswoman Cara Mygind said IAG would actively work with affected employees.

'We are talking to our team, we are talking to the unions, and we are talking, really importantly to our community.

'A lot of the people that come into our stores are vulnerable older customers, and we are working though how we can best support these customers if the decision is made to close our stores,' she said.

It had begun consultation with employees, and said it was looking redeploy as many as possible.

The company expected to move over 350 roles into digital teams and contact centres to 'bolster digital channels'.

IAG executive customer and consumer general manager, Kevin Hughes said up to 65 retail management store roles could be terminated, but the company was committed to retaining as many people as possible in either work-from-home roles, or at larger contact centres.

Customer expectations for digital services drove the decision but Hughes said Covid-19 had 'accelerated' the situation.

“For several years, we’ve seen a decline in visits to our retail stores as customers increasingly look to engage with us over the phone, via email and through our online platforms and digital channels.

“Customers expect more digitally, and we are focussed on delivering that for them.

“We know our stores have been a part of their local communities for many years, so the proposal to close them has not been taken lightly,” Hughes said.

IAG was the largest general insurer in the country, and traded under AMI, State, NZI, Lumley and Lantern brands. It employed over 3000 people.

Francis said workers were devastated.

'[They] wanted me to convey that they see themselves and their jobs as actual parts of their local communities, not just assets on a balance sheet,' he said.

IAG had given no indication that their profitability or survival was at stake, he said.

'Our worry now is that others in the finance industry - banks as well as insurers - are already mulling similar proposals and will follow suit in an exodus from the regions that could leave thousands jobless,' Francis said.

Financial Services Council chief executive Richard Klipin said a severe economic downturn along with changing work patterns and customer needs has and would continue to see businesses adjust their services across all sectors.