Allied Teamsters Approve Plan to Save Jobs at PTS

Allied Teamsters Approve Plan to Save Jobs at PTS

December 19, 2007

By a more than 3-1 margin, Teamsters at Allied Systems Holdings have voted to amend the terms and conditions of employment of PTS employees who will follow work to Allied under Allied’s proposed purchase of PTS.

The vote to approve Allied’s plan was 1,519 to 487.

"Thanks to our Allied members, Allied’s proposed purchase of PTS moves one step closer to happening. If Allied’s purchase is approved in U.S. Bankruptcy Court, this plan will save 1,500 Teamster jobs at PTS," said Fred Zuckerman, Director of the Teamsters Carhaul Division.

On November 26, representatives of carhaul local unions overwhelmingly recommended that Allied’s proposed purchase of PTS assets go out for a vote of the Allied membership.

PTS filed for bankruptcy under Chapter 11 of the Bankruptcy Code on November 19, 2007. Although PTS filed under Chapter 11, it appears unlikely that PTS will be reorganized and that the company will instead be auctioned off and liquidated.

This is the second time in less than two years that PTS has filed for bankruptcy. PTS previously filed for bankruptcy in January 2006. PTS cites lower volumes, higher fuel costs, and increased labor costs as the reasons for filing bankruptcy.