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AA staff could strike over pension changes

03 February 2010

Staff at motor recovery company AA could walk out in protest over proposals to amend the firm's pension scheme.

Thousands of workers are being balloted to decide if they should stage the first strike in the company's 105-year history.

Paul Maloney, national officer of GMB, the union handling the ballot, said: "The AA wants to cap the amount that will count towards pensionable salary."

Fears surrounding the future of the scheme could encourage many of the firm's employees to seek additional ways to provide for their retirement.

This could lead to a surge in the popularity of schemes such as equity release which can boost a homeowner's income with funds taken form the value of their assets.

The news follows an incident last year at national airline British Airways which saw staff poised to walk out amid revelations of a £1 billion deficit in its Pension Scheme was discovered by an actuarial review.