Road rage

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Where are our 1700 cars, dude?

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IOL mot pic mar24 GM Teamsters Dispute 2

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These brand new Chevrolet Volts are all amped up with nowhere to go, held hostage in a dispute between GM and the company contracted to deliver its vehicles to dealers all over North America.

Somewhere in America there's a storage yard with more than 1700 brand-new GM vehicles (worth about $47 million) parked in it - and they ain't going nowhere until a dispute between General Motors and the company contracted to deliver them to dealers is settled.

Here's how it happened: GM negotiated a wage concession with Allied Systems (the delivery company) as part of its efforts to get back in the black - but the Teamsters (America's enormously cloutful truck-drivers' union) refused to accept the lower rates.

So Allied, caught between bankruptcy and a bunch of angry truckers, invoiced GM an extra 15 percent to cover the shortfall.

At which point the Bowtie Boys said: "No way, a contract is a contract," and declined to pay - so Allied declined to deliver, and offloaded all the cars it had into storage at either Dearborn, Michigan, or Wayne Indiana.

GM has already contracted another trucking company to deliver its products and is taking legal action to get back the 1700 "hostages", slapping Allied with a costs and damages lawsuit that it apparently can't afford.

GM attorney Daniel Linna said: "The damages resulting from Allied's refusal to meet its obligations to return the vehicles to GM will be substantial - probably beyond Allied's financial resources, leaving GM without adequate legal recourse."

Sounds like GM will have to be satisfied with just getting its cars back - if that.

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BrokeWife, wrote

IOL Comments
06:51pm on 26 March 2011
IOL Comments

Apparently my comment was held though I'm not sure why. This "story" has a lot of errors & should be pulled. I'm not sure I want to waste my time explaining what happened since I run the risk of my comment not being posted; so it would be a waste of my time. The drivers have taken pay cuts for years. The cost of living & fuel have gone up; yet the pay has not. Allied got $70 million from it's drivers the last 3 years; we the employeesfamilies have had to cut our fat at home in order to survive; yet the people at Allied corporate have not. Allied did not threaten to take 20% pay- they just did it; pulled it from our bank accounts. When the threat of strike was settled 6 hours before the strike; it was said we were to get out 20% back- some did not & continued to have another 20% taken from their bank account. Some have not gotten their money back yet. There are many drivers that have not worked in 2 full weeks because we all knew strike notice had been given. Guys did not want to be stuck on the road having to dead head home. The owner operators are not being paid while Allied drags their feet trying to decide what they're doing with their accounts. Unfortunately; it's the little guy & hisher family that will suffer. Companies need to realize that without these people doing the labor they would not have a paycheck.

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Anonymous, wrote

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06:48pm on 25 March 2011
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Allied is not a copany that anyone would want to work for.....Allied terminal manager with the intails of " H.P" in Canada likes his drivers to drive over there hours which is unsafe and tampers with there pay.....and when then wont break the law ....fires them! Then when the driver asks for there policies and procdures.....Allied does not have one! But the driver must wait and wait for resolution as the Company takes their time......so i ask the auto industry..Yes the big 3 would you like them hauling your cars.....or as a hostage!!!!

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Anonymous, wrote

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10:15pm on 24 March 2011
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The truck drivers had nothing to do with this, allied cut their pay by 20 percent without any notice explaination, or warning the surprise was when they opened ther checks.This is between allied and GM. Allied took reduces rates to save GM from banruptcy, now they are doing well if not better than years past and they font want to give back to those who helped them. Its called greed and liars

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Anonymous, wrote

IOL Comments
09:06pm on 24 March 2011
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Your story is wrong in that Allied first cut the Teamsters wages by 20%, violating the National Master Contract, forcing a 72 hour strike notice from the Teamsters. When faced with a strike Allied relented and gave the wages back. Allied and GM may not have been able to reach an agreemnet at which point Allied quit hauling GM vehicles. By witholding it's labor force and it's trucks ( specialized carhauling equipment, of which there is a shortage) Allied was hoping to force GM into giving them rate increases. A decision that may backfire on them.

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Anonymous, wrote

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06:58pm on 24 March 2011
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So irritatiing. My car is one of the ones being held hostage....that I ordered back in early February. I want my darn car already!!!!

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