Allied Pays Contract Rate; Asks for New Concessions

July 1, 2010: Allied Automotive Group is paying the contract wage rate for the first time in three years, but will now come to carhaul Teamsters asking for a fresh concession package.

The International Union insisted that Allied pay the full scale, as a condition to bargain over new monetary relief.

However, Allied CEO Mark Gendregske, in a letter to Allied Teamsters, said he will seek an agreement to suspend making pension contributions on employees’ behalf, and gradually pay back the pension funds later. As of late June, local officers and the Central States Pension Fund have been unable to tell us what’s happening with this.

The present pension contribution rate in the Central States areas is $7.60 per hour, and will go up on Aug. 1.

The International union says they will now negotiate regarding Allied’s concession proposals, and will review Allied’s finances before agreeing to concessions. Article 6 of the Allied concession agreement already granted the union full access to Allied’s financial records for the past three years, so why doesn’t the union already have this information?

Any concession agreement will have to be voted on by all working and laid-off Allied Teamsters.

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