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08/10/2004
AA cuts 1,300 jobs
Up to 1,300 jobs are to go at the AA following the motoring organisation's decision to close its service centres and some key business interests.
The AA said that it would walk away from its 122 service centres – 50 of which are to be taken over Nationwide Autocentres in a new business partnership. Nationwide said that it would take over some 400 of the staff at the 50 sites, and would consider other staff for employment at its established sites.
The remaining 72 sites will close subject to consultation.
The AA announced that will also close AA Tyre Fit and its vehicle Inspections business, which had been operating at a loss.
Tim Parker, the AA’s chief executive, said that the move would "provide a better service to our members and customers".
“The AA centres have not been profitable and we believe that the arrangement we are proposing is the best long-term solution for our members and customers,” he said.
While a total of 1,300 staff are affected by these changes, the AA said that it would recruit patrols and call handling staff in some locations and try to fill posts from among its service centre, tyre fitting and inspections employees.
“We regret the impact that these intended closures will have on our people, and will make very effort to redeploy as many people as possible elsewhere within the AA and in Nationwide,” said Mr Parker.
The AA intends to close AA Tyre Fit – subject to a 90-day consultation with staff and the Union. The business ceases trading with immediate effect. Closure of AA Vehicle Inspections is also subject to consultation, but it is intended to cease trading at the beginning of November.
CVC-Permira acquired the AA from Centrica for £1.75 billion in a deal completed on September 30.
(gmcg/mb)
The AA said that it would walk away from its 122 service centres – 50 of which are to be taken over Nationwide Autocentres in a new business partnership. Nationwide said that it would take over some 400 of the staff at the 50 sites, and would consider other staff for employment at its established sites.
The remaining 72 sites will close subject to consultation.
The AA announced that will also close AA Tyre Fit and its vehicle Inspections business, which had been operating at a loss.
Tim Parker, the AA’s chief executive, said that the move would "provide a better service to our members and customers".
“The AA centres have not been profitable and we believe that the arrangement we are proposing is the best long-term solution for our members and customers,” he said.
While a total of 1,300 staff are affected by these changes, the AA said that it would recruit patrols and call handling staff in some locations and try to fill posts from among its service centre, tyre fitting and inspections employees.
“We regret the impact that these intended closures will have on our people, and will make very effort to redeploy as many people as possible elsewhere within the AA and in Nationwide,” said Mr Parker.
The AA intends to close AA Tyre Fit – subject to a 90-day consultation with staff and the Union. The business ceases trading with immediate effect. Closure of AA Vehicle Inspections is also subject to consultation, but it is intended to cease trading at the beginning of November.
CVC-Permira acquired the AA from Centrica for £1.75 billion in a deal completed on September 30.
(gmcg/mb)
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