Venture Capitalists Accused Of Planning To Asset Strip AA

GMB members employed by AA have reacted with fury to reports in a Sunday newspaper that its venture capitalist owners Permira and CVC Capital Partners plan to borrow another £500 million to pay a special "profit" of £500 million to shareholders.

Since these venture capitalists took over AA in 2004 they have laid off approximately 3,300 of the 10,000 staff delivering services to motorists. The number of patrol staffs has been reduced from 3,500 patrol staffs to less then 2,400 to deal with 11,000 breakdowns per day. Call Centre staff are subject to constant oppressive surveillance and monitoring using all the technologies involved with "dataveillance" See Note 1. All staff, including patrols staff, are required to sell extra cover and spare parts to motorists. Patrol staffs are required to cruise the highway looking for motorists broken down to sell AA membership to them. Failure to reach targets to sell cover or spare parts leads either to a drop in pay or disciplinary action or targeting for the sack. GMB have made a formal complaint to Disability Rights Commission after AA targeted disabled and sick members for dismissal.

Paul Maloney, GMB Senior Organiser for AA said "These venture capitalists have opened up a nightmare world for AA staff.

In 2004 they borrowed £1.3 billion from banks to buy the AA. After installing a regime to "sweat" the workforce and fleece the public they now leak the plan to borrow a further £500 million to pay themselves  £500 million "special profits" leaving AA "in hock" to the banks to the tune of £1.8 billion.

As the AA have 13 million members this "special profit" of £500 million amounts to taking £38 from the pocket of each AA member. It is a special type of asset stripping as it involves income stripping their own customers.

After the venture capitalists have gone with their £500 special "profits" the AA will be left saddled with £1.8 billion of debt and not enough staff to deliver what the motorist is paying for. It is time for AA motorist members to say they will not tolerate this daylight robbery."

-Ends-

Contact:Paul Maloney GMB Senior Organiser on 07801 343839. GMB Press Office: Steve Pryle on 07921 289880.

Notes to Editors

Note 1: Techniques include internet protocol CCTV, keystroke monitoring. Telephone and e- mail monitoring, GPS, etc.