LONDON - The AA motoring organization has announced plans to axe a 100 jobs in two of its call centers at Cardiff and Newcastle. The company said that the downsizing was a part of its cost cutting measures. It hopes to save about £12 million a year from this move. Around £8 million is expected to be put into getting new technology as well as telephone systems at its existing call centers.
The Newcastle and Cardiff jobs that are on the hammer are mainly related to management and administrative sections. UK's biggest car and home insurance broker however stressed that cost cutting did not mean that it would shift the jobs to India. The company, which has a two million strong customer base, said that it would not follow its rival companies in this regard. AA said that the staff has been fully briefed on this move and consultations with the official union-the AA Democratic Union- have begun in the right earnest. The move to cut jobs is the first such move after the company was taken over by two private equity firms in October in a deal worth £1.75 billion.
Announcing the decision to axe the jobs, Kevin Sinclair, managing director of AA Insurance, said, "The decision to keep our call centers in the UK is good news for customers, who will enjoy improved service and we will invest in the vital technology our staff use when customers buy insurance from us or make claims." He added that it was vital for AA to reduce costs and improve efficiency. He refused to specify the exact number of jobs that are in line, "This will become clearer as restructuring takes place and our discussions with the union and staff continue," was all he said.
The GMB Union was not pacified by these statements, "I believe that the figures the company will announce of between 100 and 150 jobs is not the full picture but is the thin end of the wedge," said Paul Maloney, GMB national secretary who is responsible for GMB members at the AA.
Posted
on : Sat, 20 Aug 2005 09:05 GMT | Business News
By : Rob Davis
|
