Allied Seeks Relief From Teamsters Contract

Click here to write a Letter to the Editor.

uto transporter Allied Holdings said Thursday it has filed a motion with the U.S. Bankruptcy Court seeking “interim relief” from the company’s contract with the Teamsters union.

Allied, which filed for Chapter 11 bankruptcy in August, said the request was made “in order to maintain Allied Holdings as a going concern, to prevent irreparable damage to the company, to preserve the jobs of its employees [and] . . . avoid the threat of liquidation.”

Allied, Decatur, Ga., is seeking about $2 million per month in cost reductions from employees covered under its collective bargaining agreement with the Teamsters.

The company also said that all of its non-CBA-covered employees with annual salaries of less than $80,000 will be required to take five-day unpaid furloughs in June.

Employees with salaries above that level — including senior management — will be required to take 10 days of unpaid leave by June, Allied said in a statement.

Allied is ranked No. 25 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.