Blue Cross of Jamaica Limited performed a reundacy exercise in January this year to cut 30 employees from its payroll, bringing down the total number of staff to 229 - the lowest it has been in at least the last four years.

The exercise, which cost $35 million, was done to "bring more efficiency" to the organisation, according to senior vice president of operations and public sector services, Noel Foster.

Reduction in staff numbers during 2007, however, was not as a result of restructuring activities from the previous year, he said.

The number of staff fell from 283 in 2006 to 259 persons last year.

Foster told the Business Observer that certain staff were taken on in previous years to perform specific jobs but would not have been replaced when they left despite their being no organisational changes.

In 2004 there were 265 persons employed by Blue Cross and 275 in 2005. The number of full-time administrative staff increase from 197 in 2004 to 228 in 2006 while full-time sales staff remained the same at 27.

The number of persons working at Blue Cross on a part-time basis, however, has been declining consistently each year to 2007, falling from 41 in number to 21.

The administrative and sales staff saw a reduction in number in 2007 as well - respectively, nine and eight persons less were employed by the end of the year.

Last year, Blue Cross managed to maintain wages and salaries at 2006 levels - $321 million - after a 30 per cent or $74 million increase in the wage bill over 2005.

The Business Observer was not able to ascertain what areas were affected by the redundacy exercise or what the wage bill may look like next year.

In the meantime, Blue Cross executives are remaining alert over the tendering of the administration of the Government Employees Administrative Scheme Only (GEASO) Fund, which they have held uncontested for two decades.

"Should the company lose the administration of this fund it will result in significant changes in other income and administrative expenses," said the company's financial statements for the year ended December 31, 2007.

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