Union fears merger will bring job losses
By JODIE MINUS
Illawarra Mercury
Jun 23, 2008
A UNION is concerned about the loss of jobs and an Illawarra icon if the proposed buy-out of Wollongong-based health insurer ahm by Medibank Private goes ahead.
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United Services Union Southern Branch organiser Rudi Oppitz said ahm's 360 Wollongong employees could be affected by the proposed merger of the two companies, which was announced on Thursday night.
"There is no doubt that whenever there is a merger, we hear them say there will be no job losses, but the facts are that jobs will go, jobs will be lost," Mr Oppitz said.
"I have not seen a merger where all the employees remain in employment.
"Every time there is a merger there is job losses and ahm will be the small partner in this merger and therefore it stands to reason that there will be job losses."
Medibank Private chief financial officer Michael Sammells said Wollongong would be retained as a hub within the company.
"ahm is a major employer in the local Wollongong region and it will continue to be so," Mr Sammells said.
"If our proposal is accepted, Medibank's existing three million members, in addition to ahm's members, will progressively be accessing a range of programs currently run by ahm.
"Through Medibank, ahm staff would have access to increased opportunities in a much larger company, and one which we think shares a similar workplace culture."
A spokesman for ahm said the terms of their discussions with Medibank meant they could make no further comment.
But Mr Oppitz said the union was also concerned about the loss of the private health insurer, which was "an icon of the Illawarra."
"The organisation was founded by an employee of Wollongong council and he along with other council workers joined together to establish the health fund," Mr Oppitz said.
"So it is a foundation organisation for Wollongong and it certainly is an organisation that we say should remain in Wollongong."
Medibank has nearly three million members and represents a 30 per cent stake in the health insurance market, with a premium revenue of about $3.1 billion for the 2007 financial year.
Published in the Illawarra Mercury, 16 June 2008
Contact:
Rudi Oppitz
USU Organiser
0409 662 460
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