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Union Challenges Bid to Buy Carhaul Company
Updated On: Sep 10, 2013
September 6, 2013 Union Challenges Bid to Buy Carhaul Company Press Contact David White (WASHINGTON) Today, Teamster Local Unions that represent more than 1,000 Allied Systems Holding workers unanimously supported informing its members on the need to take aggressive action, up to and including a lawful strike, if the current Black Diamond/Spectrum bid to buy Allied proceeds and is approved by the bankruptcy court on Tuesday, Sept. 10. "This proposed sale is a violation of our contract and it is outrageous that Allied selected this bid,"said Roy Gross, Director of the Teamsters Carhaul Division. In addition to the outright violation of our contract, we have serious concerns about Black Diamond's long-term interest in running this business. We've encouraged any entity that is serious about a viable Allied to discuss the business plan, management team, and plan for Allied's future but those suggestions have not been taken to heart by Black Diamond. Black Diamond appears to be headed down the same path that caused the liquidation of another carhaul company they funded, Performance Transportation Systems. If Black Diamond/Spectrum aren't going to honor our contracts and treat its Teamster-represent workers with the respect they deserve then there is an alternative. At the auction last month, Jack Cooper Transport, an existing auto hauling company, submitted the highest all cash bid. We have learned just today Jack Cooper has resubmitted an improved bid that should leave no doubt that it?s the best bid for the estate and the future of the company,"added Gross. The Teamsters Union has filed an official objection to Allied's proposed sale to the winning bidder, Black Diamond/Spectrum. A judge will consider approving the winning bid at a hearing scheduled for noon on Tuesday, Sept. 10. Objections to Allied's proposed sale to the winning bidder were due this week and numerous objections including the Unsecured Creditors Committee, Jack Cooper, Yucaipa, and Central States Pension Fund among others, have been filed and are publicly available for review on the court docket. "We'll make our case in court along with the other key stakeholders objecting to Black Diamond/Spectrum sale but we'll also have the ability to make our case to our members and in the streets,"Gross said. Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org
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