Allied Systems Holdings Agree To Pay Full Wages To Carhaul Teamsters

(Washington, D.C.) – Today, Allied System Holdings agreed to withdraw its attempt to unilaterally cut the wages of more than 2,500 Teamster carhaul drivers, averting a strike that would have impacted the delivery of vehicles throughout the country. The wage cuts would have been in violation of the Teamsters National Carhaul Agreement.

The Teamsters National Automobile Transporters Industry Negotiating Committee (TNATINC), which bargains on behalf of the carhaulers, was able to reach a resolution with Allied after a series of meetings with the company since it announced the cuts on March 9.

“I am proud of our members at Allied who stood strong in solidarity through this difficult process,” said James P. Hoffa, Teamsters General President and Chairman of TNATINC. “Our members have sacrificed so much the past three years to help save this company. Allied knew that they would not stand down. Our members will now receive the proper payment under their existing contract.”

In December 2007, Teamsters at Allied approved a plan to help save Allied, which included 15 percent wage cuts that were in effect for about two and a half years. The concessions were set to expire last May, but Allied balked and wanted the concessions to continue. However, a federal bankruptcy judge rejected the company’s efforts and the company finally agreed to pay an additional 20 percent as it was required to do under the original plan, retroactive to May 30, 2010.

Allied is contractually bound by the agreement to pay the industry-negotiated rate. Cassen’s and Jack Cooper, carhaul companies that are also covered by the Teamsters National Carhaul Agreement, are currently paying the established rate.

“Our members were prepared to go out on strike to ensure that Allied honored the contract,” said Fred Zuckerman, Co-Chairman of the Committee and Director of the Teamsters Carhaul Division. “I am relieved that Allied decided to do the right thing and today our members will be where they want to be – on their trucks, doing their job.”

System-wide, 58 Teamster Locals represent the 2,500 Allied carhaulers throughout the U.S. and Canada and hauls cars for General Motors, Ford, Chrysler, Toyota, Honda, Nissan and Volkswagen.

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. For more information, please visit www.Teamster.org.