Just one person will be left in the Illawarra office of the former Pillar Administration to comply with a deal made with the state government, a Labor MP has alleged.
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But Craig Rice from Mercer, which now owns the business, labelled this claim as "entirely untrue and factually incorrect".
In December 2016, the NSW Government auctioned off the Coniston-based superannuation company.
The winning bidder was global investing firm Mercer, who picked up the government-owned business for $35 million.
As part of the deal, Mercer was required to give a two-year employment guarantee to all staff at the Coniston office.
The firm is also contractually obliged to retain member services in the Illawarra for a decade - until 2026.
In June this year Mercer moved to cut as many as 25 jobs from Coniston via a call for voluntary redundancies.
In a State Parliament budget estimates session focusing on department of Treasurer Dominic Perrottet, Labor Treasury spokesman Walt Secord raised the issue of the former Pillar Administration.
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During this questioning, Mr Secord suggested there may end up being more than 25 jobs going.
"Workers have been advised in the Illawarra that Mercer intends to have one employee remain there so that they can adhere to their commitment to say that they have a presence in the Illawarra," Mr Secord said in the estimates hearing.
However, Mr Rice - the Mercer Administration Services leader - said this was not correct.
"The statement made by Mr Secord is entirely untrue and factually incorrect," Mr Rice said.
"We have never advised employees that this is the case, nor have we considered it as a possible outcome.
"Our commitment to the Illawarra remains unchanged - it is an important servicing hub for Mercer."
Mr Secord also quizzed Philip Gardner, deputy secretary in the Treasury, about the call for voluntary redundancies and found he was not aware Mercer had done this.
Mr Secord also asked Mr Gardner just what the government was doing to ensure that Mercer adhered to the terms of the contract.
"We are engaging closely with Pillar, or Mercer, regarding their plans," Mr Gardner replied.
"They have been consulting with staff regarding potential changes.
"It has been raised to our attention and we are engaged with Mercer.
"They have made assurances to the Treasurer that they are not breaching the terms of the agreement that we made and we are monitoring that to ensure that they do comply with the agreement."