CRIPPLING debt repayments caused by “smash and grab” private equity investors have been blamed for jobs cuts at the AA.
It has announced that 300 jobs will be cut which comes on top of seventy front line staff who were taken out of the business last year says.
A union for AA workers, GMB, reacted angrily to the announcement of cuts in back office job losses at AA offices.
Paul Maloney, GMB regional secretary, said: “Waiting times for customers is now around two hours up from half an hour before the sale to private equity in 2005. If you have to wait for recovery you could be at the side of the road now for up to four hours.
Having taken over the company the private equity owners proceeded to sink it in to debt and stuck the blood out of it
“The purchase of the AA by private equity back in 2005 has turned out to be a smash and grab robbery of a great British company.
Having taken over the company the private equity owners proceeded to sink it in to debt and stuck the blood out of it.
“The sale to SAGA continued the pattern of leaving the AA high and dry with billions of pounds of debt while the private equity owners retired with the cash and left the UK motorist and AA staff to pick up the pieces.”
However, the AA has said it will be creating 50 new roles as part of a business review it has been undertaking since last summer.
BBC News reports many of the job losses will be in Newcastle where the AA’s call centre activity is focused.
In a statement, the firm which has its headquarters in Basingstoke, Hampshire, said: “Depending on the outcomes of management forum, staff and union consultations there is likely to be a reduction of approximately 300 posts (including some vacancies) with 50 new posts also created.
“The reduction would be drawn principally from administrative back office functions, but the AA also intends to hire more frontline roadside personnel.
“The objective of these plans is to ensure that the AA focuses its resources on its customers and members while operating as efficiently as possible.”
