Mercer plans to stay in the Illawarra, despite redundancy talk

Mercer bought the Coniston-based business from the NSW Government in 2016 for $35 million, with a guarantee they would remain in the region for the next decade.

Earlier this year, the company floated the possibility of redundancies, which prompted union calls for the government to intervene due to a possible breach of contract.

"The NSW government guaranteed that jobs and services would be retained in the Illawarra for 10 years - yet just a few years into that guarantee Mercer is already looking at removing jobs from the area," public service union official Troy Wright said earlier this year.

Mercer Administration Services leader Craig Rice said the company had decided some or all of the work of one area may be moved to Melbourne, necessitating the redundancy option.

"A definitive decision is yet to be made and we are still exploring the option of how we can provide an improved service from Wollongong," Mr Rice said.

READ MORE: Illawarra petrol prices set to rise this week

But Mr Rice said the area in question comprised "less than five per cent of the activities we perform in the Illawarra".

He said the company was looking to maintain its base in the Illawarra, as per its contract with the state government, describing the region as "an important servicing hub" for Mercer.

"As we have previously stated, we are wholeheartedly committed to the terms of the Pillar regional commitment guarantee and more importantly to the Illawarra region," Mr Rice said.

"We are in fact currently finalising our new premises strategy for Wollongong and look forward to announcing shortly a Heads of Agreement which will cement our position as a top employer in the region.

"In addition to this, we continue to bid for new business in Wollongong, further demonstrating our intention to deliver services to clients from our Wollongong base."