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  Union Also Forces Company to Correct Illegal Action May 12, 2006 On Thursday, May 11, the Teamsters Union filed a motion to appeal the May 2, 2006 order in U.S. Bankruptcy Court that allowed Allied to cut members’ pay by 10 percent and eliminate all COLA and contractual increases until June 30, 2006. The Teamsters filed both an appeal and a motion for court permission to appeal identifying several legal errors in the Bankruptcy Court’s opinion. Meanwhile, the Teamsters Union has forced Allied to correct illegal pay cuts the company made recently. The union learned late on Thursday, May 11 that Allied illegally and retroactively cut workers’ pay, prior to the judge’s May 2 order in Bankruptcy Court authorizing a 10 percent wage cut for Teamsters. The union learned that illegal cuts were made to workers’ pay for time worked at least as early as April 24, 2006—even before the court hearing on pay cuts took place. The union was bargaining with Allied at the time. Allied’s negotiators apparently did not know about the illegal cuts. Fred Zuckerman, co-chair of the Teamsters National Automobile Transporters Industry Negotiating Committee, immediately issued a notice to Allied across the bargaining table that the Union would strike unless the illegally made cuts were corrected and the members repaid. Allied admitted its illegal action on Friday morning, May 12. Notices of the correction were reportedly posted in terminals in some parts of the country. Members whose pay is shorted for periods before the May 2, 2006 court order should contact the company and submit pay claims for the shortages. |
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