Castanet

Acting on a damning report on its corporate efficiency, ICBC followed through Thursday with 250 staff cuts, including six vice-presidents. http://www.theprovince.com/news/bc/ICBC ... story.html

Steve Crombie, the government insurance corporation’s VP of communications and marketing, said more cuts will come next year.

“We have reduced our VP ranks by six positions, with a plan to reduce by another two positions in 2013,” Crombie said.

“ICBC committed publicly in August when we responded to the government review that we would be making significant cuts.

“ICBC expects to save $29 million per year for the full 250 reductions.”

The government review’s finding stoked public anger, as car insurance costs rose in part to pay for a top-heavy bureaucracy.

“There will be some bargaining unit positions eliminated, but the focus is on senior managers and managers,” said Crombie.

“We’re confident that our customers want us to be running a lean organization and that’s what these changes will deliver.”

A company advisory said the “reductions go beyond the recommendations from the government review of ICBC earlier this year and bring staffing below 2008 levels.

“The company is making these reductions earlier than planned with a majority of the reductions occurring in 2012.”

While ICBC’s cost of doing business decreases, Crombie said customers shouldn’t feel the effects.

“ICBC has always planned to be a smaller company as we complete our modernization effort,” he said.

“We are confident that we have come to a number of positions that we can reduce without impacting day to day service to customers.”

They don't seem to mention , whether or not the recent price increase we've all felt in our insurance rates because of the feeding of the top heavy greedy management will go back to where it was.

I really doubt it.

The only way for ICBC to "shape up" is allowing private insurance to compete on the basics as well.

So far there isn't any information on the up front costs for severance packages. Suspect the ones for the VP's will be very generous.

One thing to watch is how many are brought back under the radar as contractors or consultants after a cooling off period. They won't show on the books as permanent employees so the company can still point to a savings on permanent salaries. Hopefully that quote of $29 million per year in savings is a comprehensive total including both permanent employees and contractors/consultants.

The "workers" will loose their jobs , receive some severance , and have to rebuild their lives. The executives will get huge payouts and eventually get other high paying employment from the government and their elitist cronies.
This is the way government and corporations work , especially when the corporation is the government. They probably dug up 6 or 8 executives that were ready to move on anyways. This way , they can get the golden handshake on their way out , and the taxpayers are led to believe that the government is looking out for us. It is a win / win for the big shots , and a loose / loose for the rest of us.

The cost of the ICBC layoffs has been published in the November 8, 2012 edition of The Province.

The link to the article is
http://www.theprovince.com/business/Seven+layoffs+cost+ICBC/7516565/story.html

Looking at the severance packages of the VP's make me think if the average worker got a similar package with a layoff notice he or she would be doing high fives on the way out the door.

Notice it appears there will be some reduction of severance payments if the person finds employment. At least anyone brought back to ICBC as a consultant, contractor, whatever shouldn't be allowed to double dip.

Shortened version of the Article follows:

Seven layoffs cost ICBC $2m
 
Cutting 250 jobs expected to cost a total of $26 million in severance

By Cassidy Olivier, The Province November 8, 2012

Seven ICBC executives handed pink slips last week during the first stage of the Crown corporation's staff-reduction policy will be entitled to just under $2 million in total severance pay.
According to figures provided by ICBC, the executives will individually receive between six to 17 months of their base-salary pay in compensation for their service.
The highest payout will go to the former senior vice-president of claims, who's entitled to an estimated $389,158 in severance (17 months' severance on a base salary of $274,700).
He's followed by the ex-senior vice-president of corporate affairs who's eligible for $362,394 (18 months on a base of $241,600) and the former vice-president of marketing who's entitled to up to $285,033 (17 months on a base of $201,200)
ICBC announced a restructuring of staff last week in response to a scathing report in August that found management positions and compensation costs for managers had ballooned within the last five years.
In total, ICBC said it intends to cut 250 jobs - the majority of which will be management - with a goal of saving $29 million per year. Total severance for all the reductions is expected to be $26 million, ICBC said.
A spokesperson said the severance payments for the executives who left last week haven't yet been finalized and could be altered by a variety of factors, including whether they're able to find employment during the notice period.

Read more:
http://www.theprovince.com/business/Seven+layoffs+cost+ICBC/7516565/story.html#ixzz2BhnT1nr2

Proves to me that all those years we have been paying too much for our car insurance to keep those people in place.

John500 wrote:Proves to me that all those years we have been paying too much for our car insurance to keep those people in place.

If you could stop the clock and remove anyone who is not working in that place just thing how much more could be saved!!

amazing how much the severance pay is to dump union workers.
look everytime the city of vernon etc does some internal restructuring and we pay a load of good bye hush money.
why fire a worker for no reason and then pay severance, thats bad business.
give them proper notice and work them till the end.

sweet jesus...6 VP's ??!! for an insurance company ??? for one province ??? it would be great to be able to see exactly what they did for their paycheck...can't be much considering ICBC keeps going up, so what was or is their worth ?? just glad that their extremely stupid severance packages will be taxed in the highest bracket..what a god darn waste of money !!