The Teamsters union said Tuesday that its members voted to authorize a strike against North America's largest car hauler, Allied Holdings Inc., if the company cancels its labor contract.
The union represents more than 3,700 Allied workers. A strike would snag shipments of new vehicles from factories and railheads to auto dealerships. The union began its strike vote more than two weeks ago in response to Allied's move to cut workers' wages 10 percent for May and June.
The union did not release final voting figures, but Fred Zuckerman, director of the Teamsters Carhaul Division, told Automotive News he expected it to be approved by more than 95 percent of the rank and file.
Allied, of Decatur, Ga., has been in Chapter 11 reorganization since July 2005. It delivers vehicles for the Big 3 and import automakers.
While the Teamsters have been taking steps to strike, private-equity firm Yucaipa Cos. LLC, recently bought two-thirds of Allied's unsecured debt. That would give Yucaipa a significant potential stake in Allied if it reorganizes and emerges from bankruptcy protection.
Yucaipa, of Los Angeles, has ties to former President Bill Clinton and civil rights leader Jesse Jackson. Yucaipa has urged Allied not to cancel contracts, which would trigger a strike.
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