Willie O'Dea (Limerick City, Fianna Fail)
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Question 101: To ask the Minister for Jobs, Enterprise and Innovation if he will provide an update on negotiations between management and unions at a company (details supplied); if contingency measures are being put in place in view of threatened strike action; and if he will make a statement on the matter. [33732/11]

Richard Bruton (Dublin North Central, Fine Gael)
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On 19 October last, Aviva announced its proposal to combine Aviva Ireland with Aviva UK to form a new UK and Ireland Region. In addition, Aviva announced its intention to restructure its European regional operations to strengthen the business and create a leaner cost base.

According to Aviva, both these proposed initiatives could result in a total reduction of up to 950 posts in Ireland over two years, subject to consultation, comprising 180 posts from Aviva Europe and 770 from Aviva Ireland.

However, the company has also said that it would investigate the feasibility of establishing additional centres of excellence in Ireland and as other elements of its business grow, job losses could be mitigated by some 200.

Aviva has stated that any proposed structural changes in the Irish business are not expected to begin to take effect before March 2012 and the company anticipates that it could take up to two years for a new structure to come into full effect. I understand no announcements on Irish job numbers will be made in 2011.

Arising from a number of complaints that I have received from Aviva workers, I wrote to the Chief Executive of Aviva Ireland to ascertain the steps being taken by the company with regard to engagement with staff on their restructuring proposals. I have been informed by Aviva that it is committed to providing weekly updates to all employees regarding the progress the company is making on the business transformation proposals. The first update was communicated last week and the company will continue to provide updates in the coming weeks and provide employee support through its line management and HR department.

I have also been informed that the company has entered into formal consultation with the trade union Unite regarding the pan-European dimension of the proposed restructuring of its European regional operations and that it will continue to engage with employees and their representatives in this regard.

The company has indicated that it will endeavour to achieve as many of the potential redundancies as possible through voluntary means. However, I understand that workers at Aviva have recently voted to take industrial action if the company moves to implement its proposals before agreement is reached with staff.

The services of the industrial relations machinery of the State are available to assist both sides in their negotiations, if required.