RA/PG/SC 2 February 2010


Mr Andrew Goodsell
Chief Executive
AA (Automobile Association)
Fanum House
Basing View
Basingstoke
RG21 4EA




Dear Mr Goodsell

AA PENSION

This is to formally advise you that the GMB issued advice to members, together with a consultative ballot, on whether or not they would wish to take industrial action should you choose to impose your proposals to cut the Pension Scheme.

It is disappointing that the AA has failed in both its managerial and legal duties to respond to questions that members had in respect of their pension, and it is indeed unfortunate that again you choose to bury your head in the sand over such an important issue.

You will be aware that AA staff agreed to increase their pension contributions by 1½% on the back of a promise from Management that they would retain and maintain the Final Salary Pension Scheme. You have failed to honour this arrangement to the detriment of staff.

Staff employed within the AA have, one way or another, suffered financial detriment since private equity took over, and indeed you have never explained to staff the benefits of plunging the company into 4.8 billion pounds of debt, whilst your private equity partners pocketed millions from sweating the staff. Neither have you explained the value and benefits of the Pension Scheme funds that have been invested in private equity.

The AA, under your leadership, has shown little respect, if not contempt, for the staff you employ, whilst you and your cohorts cream millions of pounds.


I can advise you that the GMB members in the consultative ballot have voted overwhelming to conduct a ballot for industrial action, and it is now our intention to set this formal process in action, unless of course, you withdraw the proposals to cut the benefits to the Pension Scheme.

Yours sincerely





Paul Grafton
Regional Organiser