Mercer to layoff over 100 staff from Wollongong office

Almost 100 others will be transferred to a different business.

The job losses are a result of the company - which provides services to superannuation funds - losing a major client Aware Super, formerly known as First State Super, in 2020.

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The company is also looking to outsource IT roles to Wollongong-based software firm Novigi.

The major blow for the company's presence in the Illawarra comes seven years after the privatisation of government-owned corporation Pillar. Mercer - a US based financial services company - bought Pillar for $35 million and took on its 500-strong workforce in the Illawarra in 2016.

At the time, then-treasurer Gladys Berejiklian said the privatisation would maintain and grow the company's presence in the Illawarra.

"Pillar is a major employer in the Illawarra - that is why the government has secured the commitment of Mercer to maintain and ideally grow Pillar's operations in the region for at least 10 years," she said.

In 2016 the NSW government said it understood Mercer would create a Centre of Excellence Hub for specialist superannuation and related services.

Industrial manager at the Community and Public Sector Union Thane Pearce said the decision was a "disaster" for workers in the region.

"I don't think people are surprised that the company is now moving in that direction, however that doesn't make it any easier for those who are now faced with the prospect of a redundancy," Mr Pearce said.

According to unions representing workers, Mercer employs 450 people at its Wollongong office and between 100 and 120 staff will be made redundant. The mix of voluntary and forced redundancies is not yet known.

It is believed around 90 Mercer IT staff will be transferred to Novigi.

In a statement to the Illawarra Mercury, Mercer said consultation with employees about the impact of the loss of Aware Super had been ongoing for the past two and a half years.

"For those colleagues impacted by these changes, Mercer has offered redeployment opportunities, outplacement services and ongoing access to Mercer's Employee Assistance Program (EAP)."

Wollongong MP Paul Scully said he was "disappointed" to hear that jobs were to be lost.

"The vague promise that Mercer was to maintain operations in the region for at least 10 years set a very low bar," he said.

"What we see time and time again is that [privatisation] leads to service cuts, price increases and employment changes."

Mr Pearce said what workers thought was a solid guarantee had turned into a catastrophe.

"Mercer had given a firm commitment to maintain their footprint in the Illawarra and would invest to grow their operations over the next 10 years, back in 2016. Well, we're not even at 10 years. What we have seen is the business that was previously run by Pillar fall away. Mercer haven't been able to build or grow the business," he said.

"If you look at the trajectory over the last eight years, it's difficult to believe, in all honesty, that the Mercer operation will still be in the Illawarra in 10 years time. It's been a disaster."

Mercer was recently hauled before the Federal Court by corporate regulator ASIC for 'greenwashing' in relation to its superannuation funds. Mr Pearce said this, and the current layoffs demonstrated the way in which multinational corporations operate.

"What is transpiring at the moment is exactly what the CPSU anticipated would happen. When government initially floated the proposal of privatising Pillar, it would be a sugar hit to the government but at the end of the day it would cost jobs," he said.

"That is exactly what we predicted would happen."

Mercer recently trumpeted its move into a new headquarters at the recently completed Lang's Corner office building.

"Mercer will continue to maintain existing administrative operations and remains committed to the Illawarra region, evidenced by our recent tenancy in Lang's Corner," Mercer said in a statement. "Importantly, Mercer provides superannuation administration services to many other clients, including Mercer Super, and will continue to do so from the Illawarra region."

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