RA/PG/SC 28 April 2010
Messrs Baker & McKenzie LLP
100 New Bridge Street
London
EC4V 6JA
Dear Sirs
Re: Your Reference JME/CDL
I am in receipt of your letter purporting to represent the Automobile
Association in what is clearly an industrial matter. Not since the bad
old days of the seventies have I seen an Employer conduct industrial
relations through the expensive vehicle of Solicitors. Obviously their
cash flow is not quite as bad as the AA state, and indeed wasting money
can often cause detriment to such things as Pension Schemes.
Who the AA recognises is not a matter of concern for the GMB, nor should
it be for you, but since they are paying you to advise the GMB of this,
I note your comments.
The GMB as a truly independent and modern Trade Union invited the AA to
enter meaningful consultation with us, as we represent almost 1,700
members in the AA, but your client, throughout this process, has chosen
to discriminate against a large proportion of membership of their staff
on the grounds of Trade Union membership, i.e., the GMB, which we will
deal with later.
I can confirm that the GMB worked rigorously to ensure that our members
affected by the then proposed changes were the people to be balloted.
Your client, the AA, has failed to again honour their obligations in a
non- discriminatory fashion, and did not advise the GMB of the
proposals. Is it now to be accepted that the revised offer, as outlined,
by yourselves has been agreed with the Management Union and accepted
before there is even a ballot of staff to accept or reject the position?
There remain unanswered questions from the client in respect of the
Pension Scheme, i.e.:-
1. In pounds and percentages, how much of the Pension Fund is invested
in Private Equity, and what returns for the Pension Scheme is received
from those investments?
2. Since the Pension Scheme owns buildings used by the AA, what income
does the Pension Scheme receive in the form of rental from the AA, and
how much has this increased year on year over the past five years?
3. The alleged new agreement, (not agreed with the GMB), offers
employees an opportunity to move to the Care Scheme, but remains silent
on an option for Care Scheme employees to move back to the Final Salary
Pension Scheme.
4. The alleged agreement remains silent on the right of existing or new
employees to join the Final Salary Pension Scheme.
On the basis of the information you provide, we will bring this to the
attention of GMB members, and we will continue with our formal ballot
for industrial action; GMB members will make an informed decision based
on your mediation in this instance.
This issue remains a valid trade dispute, and we will continue to
represent the true interests of all GMB members, the majority of whom
work in Patrol and Recovery.
Yours sincerely

Paul Grafton
Regional Organiser
Cc Press Office
Paul Maloney, National Organiser
GMB Members
GMB AA Website