Pay cut for all staff at Accident Exchange
Birmingham-based vehicle replacement specialist Accident Exchange is cutting staff pay from the board level down to save cash in the face of a car market crisis.
It is introducing a range of measures from next month, including pay cuts for all staff and an overhaul of benefits, bonuses, working practices and pension contributions.
The group has already axed 56 roles under an ongoing programme launched last November, which has so far trimmed annual costs by around £1.75m.
The latest action will shave more than £3m off its yearly costs, according to the firm.
Accident Exchange, which rents out cars to motorists after a crash, has suffered from the wider difficulties in the car market, with people using their cars less leading to fewer accidents.
The group said rental levels for the four months to February 28 were 3% down on the same period a year ago, at 12,800.
The number of days vehicles are rented out for has also dived, by 7% in the period, as repairs take less time thanks to more spare capacity in garages amid the depressed market.
Accident Exchange said underlying profits fell by more than half to £3.4m in the six months to October 31, down from £8.6m the previous year.
Cash-strapped Britons have been increasingly turning to public transport as the recession has tightened its grip, which comes after a year that also saw car use decline due to a fuel price bubble.
