(Washington, D.C.) - Nearly 3,700 Teamster members working for Allied Holdings, Inc. in the United States will regain their full rate of pay and COLA on July 1.

Bankrupt Allied withdrew their request for an 1113(e) motion on June 30, that sought to extend rate cuts Allied has imposed on carhaul workers for the months of May and June 2006.

“I applaud our members for standing strong and united,” said Teamsters General President James P. Hoffa. “It is outrageous that Teamster working families have been forced to pay for Allied management’s mistakes.”

Allied's change of heart occurred after the Teamsters union decided to hold strike authorization votes nationwide, which were unanimous in support of the union's resistance to further wage cuts.

The union also notified the court and the parties that it had the legal right to strike the company on or after July 1 under the terms of Article 16 of the National Master Automobile Transporters Agreement (NMATA). The company withdrew its demand for wage cuts on June 30.

Allied attempted to extend the 10% wage cut and elimination of COLA and benefit increases in a motion filed on June 8, 2006. After the first day of hearings on June 23, the union established that Allied exceeded their projections by such large amounts--from $6 to $10 million--that their first motion for wage cuts was totally unnecessary. Allied never drew the $5 million emergency loan that supposedly justified demanding wage cuts in the first place.

After the first day of hearing, Allied did not go forward on the second day (on June 28), and then withdrew its request for continued wage cuts two days later, on June 30.

Allied, the largest motor carrier in North America specializing in the delivery of automobiles and light trucks, distributes new vehicles for the “Big Three” automakers, import manufacturers, thousands of local auto dealerships and rental car companies.

“We currently have requested the district court to hear our appeal from the bankruptcy court's order of May 1 that allowed Allied to impose the wage cuts in May and June,” said Fred Zuckerman, Director of the Teamsters Carhaul Division.

Allied claims that the union does not have the right to appeal the May 1 order, which is the reason why the union is seeking special court permission to appeal. To that end, the union will also file a claim in the bankruptcy court to recover the lost wages.

“We are keeping up the fight to protect our members and their families during the bankruptcy proceedings,” Zuckerman said.

Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States and Canada.