Convoy
February 12, 2007. The Teamster leadership has made a tentative deal with the Yucaipa Company to give 15 percent wage concessions for 3,700 Teamster carhaulers at Allied Systems. The deal was announced today on a conference call with affected local union leaders.
The deal has several hurdles to cross, since it amounts to a takeover of Allied management by Yucaipa, the investment company that holds most of Allied's debt. Part of the deal is that CEO Hugh Sawyer will be fired. Yucaipa apparently has promised to invest in new equipment to upgrade Allied's aging fleet. The parties will be in bankruptcy court in just a couple of days, and more may be known then.
The concessions were approved in a telephone voice vote by local officials, with very few dissenting nays. But it may face much more questioning from Teamster members.
The terms of this concessionary deal put a question mark over the future of our national carhaul contract.
The IBT has agreed to the big wage cut, estimated at $35 million per year, for three years, till 2010. But the national master contract expires next year, on May 31, 2008. Bargaining could start just months from now. How can the union negotiate with all the other carriers under these terms? We could see a race to the bottom. Carhaul director Fred Zuckerman, under questioning, admitted that the other employers would come after concessions. He assured the locals they would never get them.
Under this deal Yucaipa will now own and operate the largest car carrier, Allied, and the second-largest, PTS. PTS pays union scale. Will work move from PTS to Allied over time? Will Allied undercut Cassens, Jack Cooper and other union carriers?
All carhaulers voted on the master agreement. In the past, the IBT leadership, over many years and Teamster presidents, would not allow one carrier to vote separately to break out of the pattern. Is a dangerous precedent being set regarding Teamster master contracts?
Teamster carhaulers need to look carefully at what is happening. Attend meetings. Get the facts. Talk to your fellow Teamsters. Let's unite to defend our contract and our future.
http://www.tdu.org/Carhaul/carhaulnewhtml/alliedincourt.htm
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