Pitheavlis jobs boost for AVIVA

Jun 10 2008 by Gordon Bannerman

PERTHSHIRE business chiefs and politicians breathed a sigh of relief when the Fair City escaped the axe chopping 1800 jobs from the Aviva insurance empire.

The parent company of Norwich Union announced a major restructuring on Friday and while Dundee and Glasgow were among cities losing out – triggering union outrage – Perth was confirmed as one of seven key “centres of excellence,” and one of just two north of the border.

It could see the local workforce leap from 1200 to more than 1500, with some jobs transferring from the doomed Dundee base.

And company bosses are stressing it spells good news for the Perth jobs market, with a £1.7 billion revenue generating centre ready to create new posts.

While the historic Norwich Union brand will be phased out over the next two years in favour of Aviva, the news spells the end of a whispering campaign suggesting the Pitheavlis operation was hanging in the balance.

Norwich Union is the area’s biggest private sector employer and Roseanna Cunningham MSP said: “Perth has had its share of bad jobs news in the past so I have real sympathy for the communities around the UK, particularly those in Dundee, who are facing job losses and closures as a result of the announcement.

“There will be some comfort for the folk in Dundee that the jobs are remaining in Tayside and I am sure that many will be able to comfortably transfer to Perth without too much disruption to their lives.

“The news for Perth, however, is good and bodes well for the future.

“Being named as one of Norwich Union’s seven centres of excellence shows the important role that Perth continues to play at the very heart of the operations of this leading player in the UK insurance market.”

MP Pete Wishart added: “The loss of up to 1800 jobs will be a bitter pill for many families and communities and I am particularly sorry for what this announcement means for the Norwich Union operation in Dundee.

“Hopefully, compulsory job losses can be avoided there as jobs are transferred to Perth.

“I do, however, welcome the news that Perth is to continue as a key part of the Norwich Union business.

“Perth has long heritage within the insurance industry, and the experience and skills which have been built up at Pitheavlis over the years are a testament to that heritage.

“Perth has long been a centre of excellence within the insurance industry and I look forward to that continuing.

“The importance of Perth to Norwich Union has been underlined by today’s announcement and I think it signals that insurance in Perth continues to have a bright future reflecting its proud past.”

Councillor Ian Miller, leader of Perth and Kinross Council, said: “This is very welcome news – and a vote of confidence in Perth and Kinross as a successful place in which to do business.

“Norwich Union is a significant employer in the area and the council is committed to working closely with its senior management to ensure that the company can continue to prosper and contribute to the rapid pace of economic growth in Perth and Kinross.”

Mike Beale, president of the Perthshire Chamber of Commerce said: “The Chamber applauds the decision to make Perth one of the Aviva ‘Centres of Excellence’.

“This recognises the combined efforts of the workforce and the local community to sustain growth and prosperity in Perth.

“Job losses in any community are always unwelcome and so we are delighted with the confidence currently being shown in Perth, the original home of the company.”