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New CEO Begins June 1
May 30, 2007
The Allied reorganization plan that will save thousands of
Teamster carhaul jobs and protect members’ pensions and health care benefits,
and preserve their union contract, went into effect at 11 p.m. (EDT) Tuesday,
May 29, 2007.
Highlights of the plan:
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Allied will pay all health, welfare and pension
contributions and any increases while the three-year plan is in effect;
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Total concessions are 15 percent, not to exceed $35
million a year for three years. All those funds will be spent on purchasing
new equipment to be used by Teamsters at Allied;
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Hugh Sawyer has been terminated, and a new CEO, Mark
Gendregske, has been hired. Gendregske starts June 1;
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Management and non-bargaining unit employees’ wages will
be frozen for the period of time Teamster wages are frozen with few
exceptions;
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If Allied exceeds certain EBITDA (earnings before
interest taxes depreciation and amortization) targets, the company will
return money to members;
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Reorganized Allied will remain a party to the National
Master Automobile Transporters Agreement (NMATA), will sign the successor to
the NMATA and will rejoin the Employer Association;
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All of Allied’s operation will remain “covered work”
under the work-preservation agreement with a small exception for non-union
AXIS. During the first 90 days after the plan takes effect, the union and
the company will agree on which parts of Axis will become Teamsters, or
whether the non-union parts will be sold;
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Concessions cannot be used to compete with NMATA
carriers and can only be used to bid on new business; and
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Teamsters General President Jim Hoffa has appointed a
representative to attend Allied board meetings as an observer to monitor the
financial performance of the company. Allied will pay up to $10,000 per year
for an independent auditor assigned by the Teamsters National Automobile
Transporters Industry Negotiating Committee (TNATINC) to audit the
performance of the business.
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