The Teamsters have authorized a strike if a bankruptcy court allows car hauler Allied Holdings to break its labor contract. The Georgia-based company hauls for the Big Three automakers, import car manufacturers, rental car companies and auto dealerships. Teamsters work for the company as drivers, yard personnel and maintenance employees.
On May 1, Allied announced that the U.S. Bankruptcy Court for the Northern District of Georgia had given the carrier permission to cut pay for its Teamster-represented employees in the United States by 10 percent for May and June. The court also gave Allied permission to suspend wage and cost-of-living increases previously scheduled for June 1.
With the approval of that motion, Allied said it would implement unpaid furloughs for its nonunion, salaried employees in North America. Employees with annual salaries of less than $80,000 would be required to accept a five-day unpaid furlough in June; those with annual salaries of $80,000 or more would be required to accept 10 days of unpaid furlough.
The company said the measures would save an estimated $2 million a month in Teamster-related labor costs, as well as $1 million over two months in nonunion labor costs.