Teamster Members at Allied Continue Strike Authorizations
Tuesday June 13, 10:54 am ET
Company Threatens Continued Interim Wage Rates
WASHINGTON, June 13 /PRNewswire/ -- Managers at Allied Holdings, Inc. repeated their request to the U.S. Bankruptcy Court in Georgia on June 8, 2006, to continue to impose wage and compensation reductions at the U.S.- operations of Allied Systems, Ltd., F.J. Boutell Driveaway Company, LLC and Transport Support, LLC, from July 1, 2006 through September 30, 2006.
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The bankruptcy court has scheduled a hearing on Allied's motion beginning June 23, 2006 in Atlanta.
"Current managers at Allied have failed job one in the trucking industry and the Teamsters national negotiating committee as well as many of our affected members will oppose this latest attack against our contract at the court in Atlanta," said Teamsters General President James P. Hoffa. "Intentional neglect of the operating fleet in order to pay non-productive and exorbitant turnaround fees and bonuses totaling multi-millions of earned revenue dollars is unacceptable."
Teamster drivers, yard personnel and maintenance employees perform skilled and dedicated professional service in a physically demanding, time-sensitive industry.
On June 10 and 11, members working at Allied in the jurisdictions of Local 89, Louisville, Kentucky; Local 327, Nashville, Tennessee; Local 957, Dayton, Ohio; Local 299, Detroit, Michigan; Local 355, Baltimore, Maryland; Local 961, Denver, Colorado; Local 391, Greensboro, North Carolina attended specially- called meetings. Members at the meetings showed unanimous support for a resolution authorizing strike action if Allied uses the bankruptcy court to reject and void Allied's participation in the National Master Automobile Transporters Agreement (NMATA) and Supplements. These authorizations follow the similar support received from the members of Local 332 in Flint, Michigan on June 4.
"It is obvious to all industry employees that Allied's current management has breached the basic covenant between management and Teamster labor under the NMATA," said Fred Zuckerman, Director of the Teamsters Carhaul Division.
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As a result of the amendment, the Company is not required to maintain the previously announced 10% wage reduction applicable to its U.S. employees represented by the Teamsters under Section 1113(e) of the Bankruptcy Code in order to borrow under the facility. As a result, effective July 1, 2006, the Company will stop reducing by 10% the wages earned by its U.S. employees represented by the Teamsters. As required by the collective bargaining agreement, the Company will also implement a wage increase of approximately 2.5%, as well as a cost of living adjustment.
The Company believes that obtaining this additional availability should provide the Company with the cash required to meet working capital needs and invest in its fleet while it continues to seek a long-term modification to the collective bargaining agreement with its employees in the U.S. represented by the Teamsters. The Company intends to continue its negotiations with representatives of the Teamsters in a collaborative manner in an effort to modify the current collective bargaining agreement as it attempts to complete its reorganization and emerge from bankruptcy.
The bankruptcy court has set a hearing for July 12, 2006 in regard to the final order on the amendment to the credit facility.
Link: http://ca.us.biz.yahoo.com/prnews/060630/clf035.html?.v=54
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