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August 11, 2005 Dear Brothers and Sisters: As you know, Allied Holdings, Inc., and its subsidiaries, the largest Teamster carhaul employer with more than 5,000 members, filed for Chapter 11 federal bankruptcy protection on Sunday, July 31. The Teamsters Union has taken immediate steps to protect the jobs, wages, and benefits of our members at Allied. Our members’ security is our number one concern. Because we have known for some time that Allied has faced severe financial problems, earlier this year the Union assembled a top team of legal and financial experts to monitor Allied’s situation. That team will now participate in all bankruptcy court proceedings to ensure that our Allied members’ jobs, wages, and benefits are protected. Our Allied members have already sacrificed much to try to help the company succeed, including the approval of a two-year wage freeze from 2003 until June of this year. Apparently, the Allied management was unable to take advantage of this sacrifice to make its business plan work. We will continue to have an open dialogue with the company to help the company emerge from bankruptcy on solid footing. However, we have made it clear that we will not help solve their financial problems on the backs of our hardworking Teamster members. In a conference call to employees on August 1, Allied CEO Hugh Sawyer said the cost of the Teamster contracts must be reduced for the company to successfully emerge from bankruptcy. We will urge Mr. Sawyer and other Allied executives to look at other places to save money instead of trying to cut our Allied members’ wages and benefits, which are the result of years of difficult contract negotiations. As our team carefully monitors every step of the bankruptcy proceedings, we will keep you posted throughout the process. We will frequently update the International Union’s website. Visit www.teamster.org and go to the special Allied section on the website to receive updates, including regular reports from the Union’s attorneys. We appreciate your continued support. Fraternally, James P. Hoffa Fred Zuckerman, Director |
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