Cuts to pensions led to strike ballot, announced tomorrow
The AA breakdown staff are balloting to strike over cuts to their pensions, the Times reports.
The Independent Democratic Union (IDU) is balloting 3,000 outside patrol and rescue staff at the AA and will announce the result on Wednesday.
The IDU says that the proposed changes — which include a 2.5% cap on annual increases in pensionable salary, a raised staff contribution and a cut in the maximum annual rise in pensions paid out — are designed to cut the company’s pension liabilities and make it more attractive to outside investors before an eventual flotation.
Flotation
Alistair Maclean, the IDU national secretary, said: “The private equity companies have already made big profits from the merger of the two groups and staff have already taken a lot of pain.”
Edmund King, the AA’s president, said: “This is nothing to do with flotation. The scheme has a £190m deficit. We are trying to safeguard the future of the scheme by capping it, rather than it being an open cheque.”
The GMB union, which represents some AA staff but is not recognised by the AA, is also preparing to ballot its members.
Further ballots
Paul Maloney, the GMB’s national secretary for AA staff, said: “The changes management are proposing effectively mean that the value of individual pensions will be reduced by anything up to 50%.”
The AA’s final-salary scheme was closed to new members in 2005 and new staff have since been offered a career average scheme.
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