March 19, 2007: Sopris Capital, an investment firm, has made a bid to the bankruptcy court to take over Allied, with a proposal filed on March 15, 2007. Sopris’ proposal states that they will put forth “$100 million in capital expenditures” and “the Yucaipa Plan calls for the sale of the Canadian operations [to Yucaipa!]…the Canadian operations represent a…disproportionately high amount of operating income.”
Also, Automotive New reported in their March 12 edition that Yucaipa is not the heroic savior we’ve been told. “Burkle’s company [Yucaipa] stands to profit from its efforts—the reorganized Allied will be a cash cow. Financial forecasts project the hauler will turn a $20.3 million profit this year and leap to $42.2 million next year.”
Put these two facts together. Vote No. Save the carhaul contract and negotiate short term, more reasonable concessions.
Balloting Being Watched
The Allied ballots were mailed out on March 19 to 4,262 addresses. Two observers were present to watchdog the mailing, the sealing of the unused ballots, and able to meet with the Election Supervisor. Thanks to Local 299 members Gary McCuiston and Donna McCuiston for their good work as today’s observer team. Observers are there and will be at the count due to the successful lawsuit filed by TDU attorney Barbara Harvey. If you want to help support our democratic rights, join or donate to Teamsters for a Democratic Union today.
Read about the competing bid to operate Allied.
Read the Automotive News report on Allied's expected windfall.