A major restructuring plan being carried out by the Automobile Association (AA) in Britain will not affect its Irish counterpart organisation, a spokesman for the company said yesterday.
AA Britain announced yesterday that its 142 main street shops would close, with the expected loss of 850 job, as it concentrates on its core roadside breakdown assistance business.
Mr Dennis Fisk, director of membership of AA Ireland, said the Irish operation has its own board and was financially independent of its British sister association.
The AA, a mutual society, has seven accessory shops in the Republic, including two in the Dublin area - in the city centre and in Blackrock. The Blackrock outlet will be shortly moving to new premises in the area, Mr Fisk said. AA also has accessory shops in Waterford, Cork, Limerick, Galway, Dundalk and Sligo.
The association is also moving its administrative offices from Blackrock and centralising them at Maryland House, South William Street, Dublin, but there will be no loss of jobs. AA Ireland has 185,000 members and 60,000 insurance customers. It employs 275 people, about 100 of whom are involved in breakdown assistance. AA Britain also stated that it was ending its insurance underwriting venture with Eagle Star. In addition, its Home Assistance service - which deals with non-car breakdowns - has been sold.
The changes to the 103-year-old organisation in Britain follow a strategic review ordered last year by AA director general, Mr John Maxwell.
The new approach also comes at a time when the AA, with 9.4 million members, faces increasing competition in the breakdown service market.
The American company, Cendant, has already taken over the breakdown company, Green Flag, and is poised to buy the RAC's motoring services. Also, the insurance company, Direct Line, has moved into the recovery service business.
