RAC defends decision to cut wages and pay staff based on sales performance (From Gazette Series)
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RAC defends decision to cut wages at its Almondsbury Interchange call centre and pay staff on sales performance
11:40am Friday 8th February 2013 in News By Marion Sauvebois
CAR insurance firm RAC has defended a controversial decision to slash wages and instead pay staff based on their sales performance at its Almondsbury Interchange call centre.
The move was blasted by many of the 180 employees at the centre who saw it as a ploy to save cash.
As part of the plans, staff said, contracts will be terminated. Workers will then be re-hired under a new reward system, which will see their earnings drop by between 15 and 28 per cent.
Employees, the Gazette understands, will not be offered compensation or redundancy.
The RAC defended its reward system, based on individual sales figures, saying it would better "serve existing and future RAC members" and give staff uncapped earnings potential.
"Following initial consultation and negotiations with the union and colleague representatives the business has announced a future structure and reward model for the sales and service team which has received positive feedback from colleagues," a spokesman said. "The changes will bring the business in line with similar sales-based roles in the sector."
All 180 will be coached to upgrade their skills. New technology and revised opening hours will help facilitate sales, according to the company, and enhance staff’s earning potential.
The RAC will be putting in place a period of pay protection to "support the transition to the new reward structure" and provide ongoing protection of key benefits linked to pay.
"Unite the Union believe that these changes are a positive opportunity for everyone to increase their earnings potential," the spokesman added. "This is an important step in modernising and investing in the RAC’s call centre and operational capabilities, as well as giving colleagues the opportunity to earn more and better reward their outstanding performance."
