Court Allows Some Wage Reductions at Allied
uto transporter Allied Holdings said late Monday that some of its subsidiaries had been granted interim relief from their union contracts, as the company had requested in April.
The request, granted by the U.S. Bankruptcy Court for the Northern District of Georgia, will allow some of Allied’s units to reduce wages by 10% this month and in June, the company said in a statement.
The court also said that Allied could forego wage and cost-of-living increases set to take effect June 1.
The carrier is seeking overall about $2 million per month in cost reductions from employees covered under its collective bargaining agreement with the Teamsters union.
The company also said it will implement is previously announced furloughs — all non-CBA-covered employees with annual salaries of less than $80,000 will be required to take five-day unpaid furloughs in June, and those with salaries above that level must to take 10 days of unpaid leave by June.
Allied is ranked No. 25 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
