AA faces strike action over pensions

The AA
The AA

by Phil Pitt

The AA, which is owned by Folkestone-based Acromas Holdings, is facing strike action for the first time in its 105-year history.

Patrol staff working for the roadside rescue organisation, have voted by 57 per cent on a turnout of 87 per cent, to take the action which is in protest at planned changes to the AA's final salary pension scheme.

Acromas, which also owns the succesful Saga group, describes the AA as one of its two great British brands.

But a spokesman for the firm said they were not worried any potential strike could damage the brand's reputation. "The AA remains and continues as a great brand. Any strike action is transient - if indeed there is a strike," said Paul Green from Acromas.

"At the moment all that has happened is a vote in favour of strike action and negotiations are continuing."

The AA accused its recognised union, the IDU, of "jumping the gun", by balloting AA patrols on strike action over proposed changes to the AA pension scheme before the consultation period ends on 23 April.

The AA says a majority of patrols overall did not vote in favour of strike action as more than 400 are not in the union. The AA has also stressed that in the event of any strike action contingency plans would be in place to ensure a good breakdown service for members.

Although the proposals call for a control over the future cost of the scheme, they also call on the company to increase its contributions by about 40 per cent (from £13m to about £18m) and to clear the current deficit (estimated at £190m in November 2009).

Andrew Strong, AA Services' chief executive said: "We have committed to increase our contributions by 40 per cent, and have improved our offer by raising the cap so feel that the Union are out of touch with the real world on this issue.

"This is not a strong mandate to strike and we would urge the union to think again. When you look at problems that beset Readers Digest and many blue chip companies over their pension deficits we believe that the fact that we want to keep our defined benefit scheme open is good news.

"In the consultations most staff seem to accept the need for the company to make changes to the scheme and we think the majority of staff will support our proposals.

"The AA is bucking the trend by proposing to keep our final salary section and career average sections open when most companies are closing theirs. We are proposing reasonable changes to safe-guard the future of the pension scheme."

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