Southern
Merger threat to ahm future: Bosses' sweet deal to go: union
By JODIE MINUS
Illawarra Mercury

A UNION says senior executives at ahm will receive a "golden parachute" if the proposed merger with Medibank Private goes ahead.

The United Services Union (USU) has also launched a petition urging ahm CEO Michael McLeod not to agree to the merger because of concerns about job losses, increased rates to members and less competition in the health fund industry.

USU southern branch organiser Rudi Oppitz said yesterday there was a "suggestion that a level of executive management have signed an agreement that should ahm be sold off that they would receive a golden parachute of 12 months' salary plus their entitlements".

"If that rumour is true then the union have grave concerns about the future of ahm and other employees at ahm," Mr Oppitz said.

He said the "golden parachute" would be given to senior executives who had to be let go from the fund as a result of the merger.

But a Medibank Private spokeswoman dismissed the rumours as "totally unfounded" and said they planned on retaining the ahm fund as a stand-alone brand.

She said that when details of the merger implementation agreement came out, within the next two months, Mr Oppitz would be proved wrong.

Medibank managing director George Savvides said ahm would continue to be a major employer in the Wollongong region and it was business as usual.

"We will continue to sell ahm products and services (and) retain the ahm brand as a stand-alone fund," he said.

Contact:
Rudi Oppitz
USU Organiser


Jun 26, 2008, 17:19:00 © United Services Union