A three-year plan proposed by private investment firm Yucaipa Cos. to rescue Georgia-based car hauler Allied Holdings from bankruptcy is getting the full backing of the International Brotherhood of Teamsters, which represents the carrier’s 3,300 drivers.
The Teamsters said Yucaipa’s plan would adopt economic concessions far less drastic than proposed by Allied’s present management, preserving driver pensions, healthcare, and welfare benefits with no changes to work rules or contract language. The proposal also calls for the appointment of a new board of directors and CEO on the effective date of the plan.
On February 2, Allied filed a motion in bankruptcy court 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 workers, the Teamsters said. By contrast, wage concessions in the Yucaipa plan would be 15% total over three years, not to exceed $35 million per year – with all of those funds used to purchase new equipment for Allied.
Yucaipa’s plan, which must first be approved by U.S. bankruptcy court as well as voted on by Allied’s Teamster drivers, would also return money to its drivers if its exceeds earnings targets and rejoins the National Master Automobile Transporters Agreement (NMATA) – the Teamster’s master contract covering all auto haulers.