Taking On Taking On - Teamsters Local 25
Taking On Taking On - Teamsters Local 25
Taking On Taking On - Teamsters Local 25
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1279_<strong>Local</strong><strong>25</strong>_Spring07.qxp 4/6/07 11:21 AM Page 11<br />
Allied Members Vote <strong>On</strong> Critical Reorganization Plan<br />
Yucaipa Proposal Would Preserve<br />
Pensions, Health Benefits<br />
<strong>Local</strong> <strong>25</strong> carhaulers who work at Allied voted<br />
recently on a reorganization plan filed by a private<br />
investment firm that would preserve their pensions,<br />
health benefits and their union contract.<br />
The ballots were scheduled to be counted on<br />
April 16, after this edition of The Spokesman went<br />
to press.<br />
<strong>Teamsters</strong> Carhaul Division Director Fred<br />
Zuckerman visited <strong>Local</strong> <strong>25</strong> in late February to<br />
explain the plan filed by the Yucaipa Companies.<br />
“The Yucaipa plan isn’t perfect,” Zuckerman said.<br />
“It calls for a 15 percent pay cut over three years.<br />
However, the cuts are much less severe than those proposed<br />
earlier by Allied’s current management. Plus, all<br />
the concessions under Yucaipa’s plan go toward new<br />
equipment for <strong>Teamsters</strong>,” Zuckerman said.<br />
Also, the Yucaipa plan calls for the ouster of current<br />
Allied CEO Hugh Sawyer, whose mismanagement<br />
contributed to Allied filing for bankruptcy in<br />
July 2005.<br />
“The Yucaipa plan is a bold, innovative solution<br />
that we believe offers the best opportunity for protecting<br />
and preserving your pension, health and welfare<br />
benefits and your union contract,” a letter from<br />
Zuckerman and General President Jim Hoffa to members<br />
stated.<br />
“If our members ratify the plan, it will save the<br />
company from liquidation and will save thousands<br />
of Teamster jobs in the carhaul industry,” Zuckerman<br />
said.<br />
The <strong>Teamsters</strong> represent about 2,700 active members<br />
at Allied and nearly 2,000 with recall rights.<br />
<strong>Local</strong> <strong>25</strong> represents 97 members at Allied.<br />
“We never want to see wage cuts, but the Yucaipa<br />
plan is an option our members would vote for,” <strong>Local</strong><br />
<strong>25</strong> President Sean M. O’Brien said. “Under the plan,<br />
our members’ pensions and health and welfare benefits<br />
remain protected. Their futures will remain more<br />
secure. It is also evident that the auto transport industry<br />
as a whole, both union and non-union, seem to be<br />
paying for bad management planning. This is evident<br />
with the non-union carrier Blue Thunder going out of<br />
business. Fortunately for us, in these cases union companies<br />
have secured these contracts, thus providing<br />
more work for our members.”<br />
www.teamsterslocal<strong>25</strong>.com | SPRING 2007 | The SPOKESMAN | 9