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Despite employee concerns, AAA says downsizing is not driven by pandemic, insurance reform

December 18, 2020 By Times-Herald Newspapers Leave a Comment

Photo by Sue Suchyta
Amid employee concerns following AAA’s internally announced company-wide downsizing, the company maintains that buyouts are not a result of the pandemic or auto insurance reform.

ByBy SUE SUCHYTA
Times-Herald Newspapers

DEARBORN – Amid employee concerns about workforce reduction, the AAA Auto Club Group denies that a downsizing recently announced to its employees is driven by either the pandemic or auto insurance reform.

In a statement released last week, AAA ACG said that up to 1,276 eligible employees who would like to retire or leave the company will be offered an enhanced compensation separation package commensurate with an employee’s years of service.

One year of medical and health benefits, at the employee’s current premium rate, also will be offered.

AAA said the move is being made to “better align its business model and maximize value for its members.”

A spokesperson said the company will continue to identify efficiencies that will “better position the business for long term success.”

It was noted that some departments will experience organizational changes that will result in some job elimination.

AAA ACG currently employees 10,200 people in 14 states, and states its financial position is strong.

The company contends the staffing reduction will not impact AAA member benefits, products or services.SUE SUCHYTA
Times-Herald Newspapers

DEARBORN – Amid employee concerns about workforce reduction, the AAA Auto Club Group denies that a downsizing recently announced to its employees is driven by either the pandemic or auto insurance reform.

In a statement released last week, AAA ACG said that up to 1,276 eligible employees who would like to retire or leave the company will be offered an enhanced compensation separation package commensurate with an employee’s years of service.

One year of medical and health benefits, at the employee’s current premium rate, also will be offered.

AAA said the move is being made to “better align its business model and maximize value for its members.”

A spokesperson said the company will continue to identify efficiencies that will “better position the business for long term success.”

It was noted that some departments will experience organizational changes that will result in some job elimination.

AAA ACG currently employees 10,200 people in 14 states, and states its financial position is strong.

The company contends the staffing reduction will not impact AAA member benefits, products or services.

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