Teamsters Approve Firm’s Plan to Reorganize Allied Holdings

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Teamsters union leaders who represent auto-haul workers have unanimously approved a plan by private investment firm to reorganize auto hauler Allied Holdings, the union said late Tuesday.Allied, the largest auto-hauling company in North America, employs about 3,300 Teamsters in the United States.The investment firm is Yucaipa Companies LLC, which had also been involved in a plan to help auto carrier Performance Transportation Services emerge from bankruptcy in January. (Click here for previous coverage.)The three-year plan from Yucaipa requires approval from the U.S. Bankruptcy Court in Atlanta and must be ratified by Teamsters members. It would adopt economic concessions less drastic than proposed by Allied’s management, the union said.An Allied official reached by Transport Topics Wednesday declined comment.The carrier filed a motion in bankruptcy court Feb. 2 seeking to nullify the contract and asking for a reduction of $65 million per year for five years for a total of $325 million from its Teamster employees.Allied is ranked No. 27 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. PTS, the third-largest auto carrier, is ranked No. 66.(Click here for previous coverage.)