By Richard Burdge

PERTH EMERGED as one of the winners yesterday in a major restructuring exercise by insurance giants Aviva.

While national job losses of up to 1800 over the next two years were being described as “brutal” by the unions, Perth has been chosen by the parent company of Norwich Union to act as a “centre of excellence” and will benefit on a number of fronts.

The announcement means the 1200-strong workforce based at Pitheavlis in Perth will increase dramatically in the near future, cementing the company’s presence in the city.

“We are expecting a considerable increase in the numbers of staff in Perth over the next two years,” said George Berrie, director of trading at Norwich Union.

“It will be an extra 230 people up to a possible 400, depending on how things go elsewhere.”

Some of the jobs will be transferred from Dundee, although Mr Berrie was unable to put an exact figure on the numbers involved.

He said he did not anticipate people in Dundee losing their jobs—at worst they will have to commute to Perth.

The extra staff in Perth will not all be down to transfers and will involve a number of new jobs.

However, the news was greeted with shock in Dundee yesterday.

Last night one Dundee employee told of the “stunned silence” that greeted the news when it was broken to staff in the company canteen.

He said, “It was a strange day. One woman started crying. There are a lot of people who thought they would have a job for life there and there are lots of husbands and wives who work together.

“Management said there would be an increase in wages to make up for the extra cost of travelling to Perth and there was talk of childcare facilities being provided and possibly a bus to take people from Dundee to Perth.”

On the boost for the Perth operation, Mr Berrie said, “There is an element of recruitment. It is not purely transfers, which will be good news for the local job market as we hire new people.”

As a centre of excellence, Perth will be one of a small number of bases around the country, including Manchester, Leicester and Southend.

“As an organisation we are moving to seven centres of excellence and we are delighted that Perth is one of them,” said Mr Berrie.

“Also 40 trading locations across the country remain unaffected.

“Creating these centres of excellence has meant a reduction of staff elsewhere but it is great that Perth is on the upside.

“We want Aviva to be the best around the world and Perth to be part of that.”

Mr Berrie said that as a centre of excellence Perth will handle a variety of important functions including personal and commercial lines service and sales and property claims.

The changes will be good for staff in Perth and mean a far greater career path is available to them, he said.

Mr Berrie pointed out Aviva—formed from the merger of Norwich Union and CGU in 2000— generated £1.2 billion in revenue from the Perth office while overseeing bases from Aberdeen to Southend, including London.

The changes have been deemed necessary as a result of a number of mergers and acquisitions, making their operation over-complex.

Earlier this year the firm announced the Norwich Union brand would be making way for a single identity of Aviva as a way of competing in international markets.

The UK’s largest general insurer with a market share of around 15%, it is also a leading provider of life, pensions and investments products.

With links in Perth dating back to 1885 when General Accident was born, insurance jobs have played an important part in the local economy.

The Pitheavlis building was built by General Accident as a world headquarters although in recent years it has seen turbulent times, including job losses.

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.”

Perth MSP Roseanna Cunningham 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...

“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.”

Echoing her sentiments, Pete Wishart, MP for Perth and North Perthshire, said, “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 a 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.”