EMCC European Monitoring Centre on Change

AA

Company/Organisation:
AA

Geographic Location

Country: United Kingdom
Region: Wales
Location of affected unit(s): Cardiff

Company

Sector: Administrative services
Administrative and support service activities
82.2 - Activities of call centres

Employment Effects

Announcement Date: 03-10-2012
Planned Job Reductions min: 223
Planned Job Reductions max: 223
Type of Restructuring: Internal restructuring

Additional Information

AA insurance company has announced plans to cut 406 jobs at its call centre staff in Cardiff following a sharp increase in online transactions. The company will relocate its call centre activities to AA premises in Newcastle, where 183 new posts will be created. The relocation is partly blamed on the fact that the lease on AA's Cardiff premises expires in 2014 while the Newcastle office is freehold. The affected staff come from the company's car and home insurance division and are aged under 30.

AA has entered a 90-day consultation period with staff. According to media reports, trade unions characterized the restructuring as 'corporate greed', while representatives of the Welsh call centre industry forum stated that they would help affected staff find alternative employment in the local community.