Nothing unfair about job cuts: Medibank

Medibank Private has defended its latest round of job cuts in the face of what it says are misleading claims from the public sector union.

The Community and Public Sector Union (CPSU) has labelled the Government-owned private health insurer's job cuts "unfair".

But Medibank has questioned the timing and accuracy of the CPSU's comments.

"We have been consulting on the changes with the Commonwealth Public Sector Union since November, with an announcement to all staff in February," said Medibank spokesman James Connors.

"Subsequently, staff directly affected by the changes were briefed in early March, and individual consultations for their own work preferences have been ongoing."

The CPSU had attacked the insurer for scrapping 40 full-time jobs and asking more than 200 full-time workers to consider part-time contracts.

But Medibank says these figures are wrong. It says it will be converting 140 full-time equivalent positions into 135 part-time positions.

Mr Connors said the main reason for job cuts was keeping premiums low for customers.

He also said Medibank's customers were using services in different ways, and the company had to adjust its employment arrangements accordingly, for example opening at 10:00am instead of 9:00am to suit demand.

Earlier CPSU spokeswoman Nadine Flood said the plan was forcing workers to accept part-time work or face the sack.

"We think it's a very tough choice to have to make in the current economic climate - 'cut your hours or lose your job'," she said.

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