(PRWEB) September 4, 2003
London, UK (PRWEB) Sep 4, 2003 -- Tens of thousands of jobs in the North West could be lost if major insurance employers continue to outsource jobs to India, with the potential loss of 20,000 finance sector jobs over the next five years.
Amicus, the largest finance and insurance sector union in the UK, is warning that tens of thousands of jobs in the North West could be lost if major insurance employers continue to outsource jobs to India, with the potential loss of 20,000 finance sector jobs over the next five years.
Companies such as Royal & Sun Alliance, Friends Provident, Aviva and Axa have set up operations in India.
Industry experts and consultants predict that up to 200,000 UK jobs are likely to be lost in the biggest industrial collapse since manufacturing was decimated in the early 1980s. Analysts predict a total of 2 million jobs will migrate from Western Europe by 2008.
Service sector industries including call centres replaced manufacturing jobs in many of Britain's worst industrial blackspots and have sustained the economy since the collapse of traditional heavy manufacturing.
Workers in India are paid 75% less than their counterparts in the UK and the "off shore bonanza" will mean "three out of four major financial institutions will be off shore within two years". In addition, to be outsourced, will be a whole range of back office functions from actuarial and legal work to paper processing in almost all employment sectors.
According to David Fleming, National Secretary for Finance, "Whole communities across the North West are being asked to face the nightmare of the 1980s once again. It is imperative that the Government acts now on the lessons learnt from then and takes steps to manage this next industrial and social earthquake."
"Our members are upset and confused by the current situation and union membership is growing markedly as a result. We will take whatever action is necessary to make sure that employers and the government deal with this matter urgently and in partnership with the communities that rely on them."
Lee Whitehill +44 (0)7768 693950.