Allied Carhaulers Take Cut, Others Get Raise

May 31, 2007: Teamster carhaulers at Allied Holdings now make 19¢ less per loaded mile than their brothers and sisters at other carriers. “It’s brutal,” a Detroit driver commented as he thought about what he will lose in the coming year.

Carhaulers get a 2.5 percent raise on the June 1 contract anniversary —50¢ per hour and 2.5¢ per loaded mile (1.25¢ per running mile). Two days earlier, Allied Teamsters got slapped with a 15 percent cut, putting them 17.5 percent below union scale. The contract loaded mile rate now stands at $1.12, but has been cut to $.93 for Allied drivers; the running mile rate is cut to 47¢, and the hourly rate is down to about $18.40.

June 1 also marks the one-year countdown till the contract expiration. This will create a huge challenge, because the IBT leadership signed a three-year cut and freeze with Allied, taking them out of the bargaining cycle.

Worth considering: if Allied returns to profitability, the IBT could demand to reopen the Allied contract, with the aim of reestablishing wage parity that has prevailed in the industry for decades.


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