A Teamsters local in Flint, Mich., voted Sunday, June 4, to strike Allied Holdings Inc. if the troubled car hauler cancels its union contracts.
Local 332 is the first Teamsters union local to approve strike authorization. It represents about 380 workers for Allied Automotive Group, the main subsidiary of Allied Holdings. The Teamsters are asking 60 U.S. locals to approve strike votes against Allied, which wants to cut hourly wages as it tries to emerge from Chapter 11 bankruptcy protection.
Allied, of Decatur, Ga., is North America's largest car hauler, with about 47 percent of the market. Detroit automakers rely heavily on the company to deliver new vehicles from factories and railheads to dealerships. Allied also delivers vehicles for import automakers.
The Teamsters union represents about 3,700 Allied workers nationwide.
Weighed down by spiking fuel costs and lower production by Detroit car companies, Allied filed for bankruptcy last July. Its reorganization has been marked by confrontations with the Teamsters and financial difficulties. In May the company won a temporary 10 percent wage cut that expires at the end of this month.
Allied's $230 million line of credit has been in jeopardy, and the company has renegotiated the agreement four times.
You may e-mail Greg Migliore at [email protected]