NRMA Insurance has confirmed it will outsource services at its Wollongong and Shellharbour offices, potentially costing 21 people their jobs.
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The company will also shut agencies in Helensburgh and Thirroul. NRMA Insurance spokesman James Rickards yesterday said NRMA Insurance would make a switch to "agency models".
He said this was necessary to keep the company's presence in the Illawarra and for it to "continue to offer a strong level of service for local customers".
NRMA will keep its agencies at Woonona, Nowra, Kiama, Ulladulla, Vincentia and Sussex Inlet.
Helensburgh, Thirroul, Berry and Sanctuary Point will shut their doors by mid-2013.
The outsourcing at Wollongong and Shellharbour affects 21 staff who hold a mix of full-time and part-time positions.
The Mercury understands the employees - many who have worked at the Illawarra offices for more than 20 years - are distressed by the decision. They were not allowed to speak to the media about the move and questions were referred to the company's Sydney offices.
The Finance Sector Union, which represents the workers, said yesterday it "opposes the outsourcing of jobs". It was committed to assisting members through the redeployment process, national director Julia Angrisano said.
South Coast Labour Council secretary Arthur Rorris said the move was another blow to the Illawarra.
"Locally the outsourcing bandwagon continues as more and more employers seek to increase their profits at the expense of the pay, conditions and jobs of Illawarra workers," he said.
NRMA Insurance is providing support to staff during the changeover.
"A small number of our people will be affected by these changes and we are actively working with them to explore opportunities across our remaining locations and the wider network where available as we support them through this transition," Mr Rickards said.
"There is also a possibility the new owner will want to employ the professional and experienced people who currently work there and we will facilitate an introduction as soon as practical."
The company made the decision to outsource after an "evaluation of customer usage and efficiency". Mr Rickards said NRMA was "committed to its on-the-ground South Coast presence" and ensuring its NSW sites "remain sustainable and available to customers".