The union representing drivers in Allied Holdings Inc. (AHI) Chapter 11 case is asking the bankruptcy court to deny the company's bid to pay 83 executives up to $10.2 million in severance and retention bonuses.

The International Brotherhood of Teamsters wants the court to reject Allied's request for an employee retention pact that would reward key executives for staying at the company during its Chapter 11 case.

According to court papers filed Thursday in bankruptcy court, the Teamsters union said the "massive" bonuses are unnecessary and will hurt the company's chances of reorganizing. The Teamsters represents about 5,000 of the company's 6,000 workers.

Allied, according to the union, has "exaggerated" the threat of its executives leaving because there are few opportunities available, court papers obtained Wednesday by Dow Jones Newswires said.

Rather, the union said the bonus plan is a "management's attempt to recoup bonuses not paid in the last two very lean years for Allied."

A hearing to consider approval of the bonus plan is scheduled for Friday in the U.S. Bankruptcy Court in Newnan, Ga.

Barring a court decision to deny the bonuses outright, the Teamsters want Allied to disclose the names of the executives and the amounts to be paid to them.

Allied didn't identify the 83 key employees, but said they "possess unique knowledge, skill, experience," according to court papers.

The proposed plan, which includes both severance payments and retention bonuses for the key workers, has the support of the company's committee of unsecured creditors.

The severance portion of the plan would cost a maximum of $5.6 million. Allied would pay up to $4.6 million in retention bonuses to the 83 employees. The bonuses range from 20% to 96.4% of a recipient's annual salary.

Allied Holdings, one of the largest transporters of vehicles in North America, blamed its falling revenue on a decline in deliveries due to automakers' scaled-back auto production.

The Decatur, Ga.-based company and 23 subsidiaries filed for bankruptcy July 31, listing assets of $132 million and debts of $180 million.