Teamsters Approve Allied Strike if Company Voids Labor Contracts

Michigan Members Are First to Authorize Strike

FLINT, Mich., June 5 -- On June 4, Teamster Local 332 unanimously approved a strike authorization against Allied Automotive Group in the event that bankruptcy court allows the vehicle-hauling company to reject its labor contracts. Allied Automotive Group is the primary subsidiary of Allied Holdings, Inc., which is currently in bankruptcy proceedings. Hundreds of Teamsters from three Michigan Locals attended the meeting.

"They can't make this company come out of bankruptcy without our hard work and dedication," said Rex Wheeler, a member of Local 332 in Flint, MI and 16- year Allied worker. "We're going to stick together and get what we deserve."

Nearly 5,000 Teamster members work for Allied, the largest motor carrier in North America specializing in the delivery of automobiles and light trucks. Allied distributes new vehicles for the "Big Three" automakers, import manufacturers, thousands of local auto dealerships and rental car companies.

"Our members perform a vital service for the automotive industry and are recognized as the best in the industry," said Fred Zuckerman, Director of the Teamsters Carhaul Division. "If they break our contract then our members will have no alternative to striking them."

The Teamsters represent members in 60 locations, including Detroit, Flint and Pontiac, MI; Kansas City; Atlanta; Greensboro, NC; Ridgefield and Port Jersey, NJ; Norfolk, VA; and Dayton, OH. These members would be adversely impacted if the bankruptcy court permits the company to void its labor agreements.

"I applaud our members for taking a stand against corporate greed, the parasite feeding off our members' invaluable contributions," said Teamsters General President James P. Hoffa. "I have no doubt that this is the first of the strike authorizations against Allied."

The International Union has called on other locals with Allied members to authorize strikes in the next two weeks. Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States and Canada.