Tower Insurance has made experienced New Zealand staff redundant to hire cheaper labour in Fiji and the Philippines, with former employees describing it as the "most toxic workplace ever" as their final days wind down.
The redundancies, detailed in a Reddit post from affected staff, represent a familiar Pacific story - but with complicated dynamics that go beyond simple "jobs going offshore" narratives.
New Zealand companies outsourcing to Fiji isn't inherently bad. Fiji needs employment opportunities, and there's nothing wrong with Pacific nations competing for service jobs. But this isn't development partnership - it's a race to the bottom.
Tower is hiring in Fiji and the Philippines specifically because labour is cheaper, not because those locations offer better skills or service. Experienced New Zealand workers who built institutional knowledge over years are being replaced by lower-paid workers who'll need training and likely face higher turnover.
From the Fijian perspective, these are jobs. But they're jobs that exist only as long as Fiji remains cheaper than alternatives. If wages rise to reflect cost of living, Tower will just find somewhere cheaper again. That's not sustainable employment - it's exploitation with extra steps.
The New Zealand workers are understandably bitter. They're losing careers, not just jobs. Insurance claims handling requires expertise built over time. Replacing that with high-turnover offshore teams damages service quality.
The broader Pacific angle matters. Regional economic integration should mean mutual benefit, not New Zealand companies extracting cheap labour from neighbouring islands while cutting local jobs. Real partnership would involve upskilling Pacific workers for higher-value roles, not just shifting low-wage positions around.
