GMB, the union for staff in the AA, are calling on the Pension Regulator to investigate whether trustees have behaved in a correct and proper manner as the pension deficit rises to reach £622m.
GMB believe that the trustees role should be examined, particularly around the area of ‘conflicts of interest.’ (see notes to editors for duties and responsibilities of pension trustees)
Earlier this month GMB called for the Pensions Regulator to examine the role played by previous owners which is impacting on the current pension deficit of £622m. The AA pension deficit is now one of the largest pension deficits as a percentage of equity capital among FTSE 250 companies.
With net debts of £2.8bn and a pension deficit of £622m, nearly twice as much as that of the BHS pension deficit of £345m reached on Philip Green’s watch, the role of the trustees must be rigorously investigated.
Paul Grafton, GMB regional organiser said, The role played by the AA pension fund trustees at the time the deficit has ballooned to £622m must be rigorously investigated and scrutinised in detail by the Pensions Regulator.
As the BHS pension deficit under Philip Green’s watch is being put under a spotlight, so must the AA deficit which is nearly twice as much. Politicians are demanding that Philip Green uses some of his personal fortune to plug the BHS pension shortfall.
GMB question whether the trustees have been properly proactive in protecting the fund while money has flowed out of the organisation to the private equity owners and in interest payments to cover the debt mountain they landed on the organisation."
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