10:18am Saturday 16th September 2006
A PUBLIC backlash could sweep over Norwich Union after their plans to make hundreds of York people redundant, it was warned today.
Even the insurance giant's customers were angry about its plan to axe 450 posts in the city.
The company said the losses - which will see some call centre jobs shipped to India - were due to customers using the internet to buy insurance.
But Brian Percival, chairman of york-england.com, said: "I know a lot of people who simply say "if I have to go through a call centre or a computer, I won't deal with you. I will pay the extra premium and deal with someone face-to-face. I need a personal service"."
Coun Percival, who is also head of Selby District Council's economy board, said: "This whole thing has been thoroughly bad publicity for the company.
"It comes at a time when there is an ever-increasing number of complaints about dealing with call centres, and worse, dealing with call centres whose staff have no knowledge of the area or its issues, unless it's on their checklist.
"Personally, I have a rule that I will never take any insurance out online or over the phone, because the questions they ask are so limited."
York residents said they were "disgusted" by the job losses - with one saying she wouldn't trust the company in the future.
Despite the ill-feeling among consumers, shareholders in Norwich Union's parent company, Aviva, had more reason to be cheerful.
Financial experts predicted the job losses would be good for the company as a whole.
Share prices in Aviva rose throughout the day the job losses were announced, and closed at 770.50p, the highest since July.
Bruno Paulson, of analysts Sanford C Bernstein, said the restructuring would have a "mild positive" effect on Aviva shares.
Mikir Shah, a financial analyst at Fox-Pitt, Kelton Ltd said, "There is definitely potential for greater efficiency."
Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said: "At a personal level it's tough; the workers are going to have to find another job. But, at a business level, Norwich Union need to remain competitive."
Louise Reed asked people in York for their views on the Norwich Union job losses
Florence Newdick, 15, of Heworth, York, said: "I probably wouldn't trust them if there have been job losses. I think there should be secure jobs and if people abroad are getting the jobs, it's not fair."
Colin Tregellas, 35, of Clarence Street, York, said: "While the companies are saving money, the customer service goes down. It's a sad state of affairs. It is bad, but it's just business."
Ken Foster, 62, of Woodthorpe, York, said: "It's disgusting the way they have treated the staff. It's profits before people as far as I'm concerned."
Barry Barker, 51, of Acomb, York, said: "Companies always think they can pick and choose. I worked at Terry's for 14 years and they shut it down just like that. They never thought about the workers.
They must be doing this because the labour is a lot cheaper over there, but it's not right."
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