Allied Tears Up Concession Deal, Pays Management Bonuses

September 9, 2008: In recent days, Teamster carhaulers have been hearing from Allied management personnel about the nice bonuses that some of them received.

Now, IBT Carhaul Director Fred Zuckerman reports that Allied management has admitted paying bonuses, in direct violation of the 2007 concession agreement.

Zuckerman, in a Sept. 4 letter to Allied Holdings CEO Mark Gendregske, demanded that the Teamster pay cut be rescinded and all Teamsters be made whole for the pay cuts since May 2007, with interest.

The concession deal that was narrowly approved by Allied Teamsters in May 2007 contained an “equality of sacrifice” provision: while Teamsters are under a wage cut and freeze, Allied cannot give raises to executives or management personnel. That provision was one of Zuckerman’s selling points when he pitched the deal to members.

Allied has blatantly violated it, and also violated the clause that requires notice to the union of any exceptions to the equality of sacrifice provision.

Management has voided the deal. Accordingly, the wage cut should be void.

We’re glad to see Zuckerman saying No for a change. We hope he means what he says. If not, you can bet that Allied Teamsters will pursue this matter.

Click here to see Fred Zuckerman’s letter to Allied CEO Gendregske.

Say No Givebacks in the carhaul contract. Click here to order No Givebacks stickers.

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