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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

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