Allied Holdings Inc. has announced that employees of its subsidiary, Allied Systems, represented by the Teamsters Union have ratified the new labor agreement
that had previously been negotiated between Allied Systems and the National Bargaining Committee for the Teamsters.
International Brotherhood of Teamsters General President Jim Hoffa said the contract was ratified 72% to 28%.
"By ratifying this agreement, our carhaul members have protected the health benefits and pensions they have worked so hard to secure," said Hoffa, who served as chairman of the Union's National Negotiating Committee. "The industry is facing difficult conditions, and this agreement improves job security, increases wages and provides a strong cost-of-living adjustment. I am most proud of how our members stuck together and beat back efforts by Allied Automotive Group to negotiate a separate agreement."
The new agreement is for a five-year term that began June 1, 2003, and covers 4,300 drivers, mechanics and yard personnel in the United States. These employees represent about 70% of Allied Holdings' employees.
Economic provisions of the new agreement include a wage freeze for the first two years of the agreement and wage increases of about 2% on June 1, 2005, 2% on June 1, 2006, and an additional 2.5% on June 1, 2007.
The agreement provides for increases in company contributions to health, welfare and pension during each year of the agreement.