Allied Threatens to Bust Contract in Court

February 8, 2006: Allied management sent thousands of carhaul Teamsters a letter dated January 31 stating that, unless they are given more concessions from Teamsters, then they may “seek appropriate relief from the bankruptcy court…to set aside an existing collective bargaining agreement and authorize reductions in pay and benefits.” It looks like they are testing the waters to see if they can get concessions from the International Union. We cannot have our national master contract busted in court. If the largest carhaul employer could break the contract using bankruptcy court, then other employers under the master agreement would demand parity, and the downward spiral would only worsen. We cannot allow the new corporate tactic of using bankruptcy court to destroy decades of union struggle to win good contracts and decent family benefits to spread into our union and the trucking industry. Allied’s letter does not mention that Teamsters have already gave in to a two year wage freeze, have been hit with pension accrual cuts, and slapped with the destruction of retiree health care benefits. Carhaulers know the industry problems are real. But the answer is not open-ended concessions with no union plan to protect jobs and job security.

Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

Third Quarter Financials: Central States Pension Bleeding - Congress Must Act to Protect Pensions!

The 2018 third quarter Financial and Analytical Report on the Central States Pension Fund shows that the Fund continues to bleed money, underscoring the importance of Congressional action this year to protect the pensions of millions of working families.

What’s Next for UPSers Who Voted No?

UPS Teamsters got sold out when the Hoffa administration stood with the company against the members and imposed the contract.

View More News Posts