Did Ron Burkle Conspire with Hoffa to Acquire Allied?

May 9, 2007: Two shareholders who own 337,000 shares of Allied Holdings filed a class action suit charging that Yucaipa owner Ron Burkle conspired in 2006 with the leadership of the Teamsters to take control of Allied.

The suit, filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act, alleges that in May 2006 Burkle made his move, after his business partner, former President Bill Clinton, helped get Hoffa on board.

The Teamster leadership then arranged for a side-deal of concessions to Yucaipa, and pressured Allied to go along, because the concessions would only be offered if Yucaipa got control of Allied.

The deal was kept quiet until after the November 2006 Teamster election to avoid a “problematic time for Hoffa to have to announce and explain to the rank-and-file membership of the IBT any concessions or givebacks” the lawsuit alleges.

In April, Yucaipa and Allied bought-off another potential competing bidder for the company with $525,000 cash and millions paid for stock.

How much of that comes out of money promised to be used for new equipment is anybody’s guess.

That settlement deal also contains a provision that no one, including attorneys in the case, may give any information to Teamsters for a Democratic Union (TDU). Apparently Yucaipa considers TDU to be a threat.

The suit will not benefit working Teamsters; it will not delay Yucaipa in taking control of Allied, or the 17 percent concessions which will go into effect around June 1.

The lawsuit and the Wall Street Journal report on it are available here.

Get Advice Join TDU Donate

Recent News

The New Yorker Covers Our Historic Fight at UPS

UPS wants the public to think that Teamsters are overpaid and greedy. But UPS Teamsters got a chance to speak out on why we’re fed up and ready to strike if we have to in a big story in the New Yorker called, “UPS and the Package Wars.” The magazine spoke to shop steward Antoine Andrews and other TDU members and follows contract campaign activities in Local 804, to get a glimpse at the momentum Teamsters are building at UPS. Read it online or the pdf version.

Register for TDU’s Contract Enforcement Workshops

Register for TDU's latest online workshops to get the tools to enforce your contract, deal with difficult supervisors on the shop floor and in the office, and beat unfair discipline. Take one training or the whole series. Our online workshops are free, but advance registration is required.

View More News Posts