Saturn Sky Forum banner
1 - 17 of 17 Posts

·
Premium Member
Joined
·
830 Posts
Discussion Starter · #1 ·
Just found this, Now what, will I ever get a SKY..:confused:



Originally Posted by Automotive News.com
It's crunch time for car hauler
Wage-cut demand raises prospect of crippling shutdown


Greg Migliore Automotive News | 6:00 am, April 17, 2006

North America's largest car hauler, facing a foreclosure deadline by lenders and a possible Teamsters strike, could be forced to shut down within weeks - a development that would cripple the vehicle supply line.

Allied Holdings Inc., pressed by lenders to cut labor costs or face a cutoff of funds and a demand for liquidation, filed an emergency petition in U.S. Bankruptcy Court in Georgia last week. Allied is asking a judge to order a 10 percent wage cut for union workers.

If the judge says yes at an April 26 hearing, the Teamsters say they'll consider a strike.

If the judge says no, creditors could ask the court to liquidate the company pursuant to a loan agreement that expires this week.

Neither Allied nor its lenders are commenting. But there was agreement in the auto industry that an Allied shutdown would be a disaster.

"That could basically cripple the delivery of vehicles across the country," says CSM Worldwide analyst Jim Gillette.

Dominant hauler

Allied, of Decatur, Ga., has 47 percent of the North American vehicle-hauling market and dwarfs its competitors. According to court papers, the company operated 4,580 trucks in North America as of March 2005. No. 2 PTS Inc., which has 23 percent of the market, is also in Chapter 11 reorganization. The next two largest haulers combined have about 15 percent of the market.

General Motors, Ford Motor Co. and the Chrysler group accounted for almost 75 percent of Allied's business in 2004, according to court documents. Toyota Motor Corp. and Honda Motor Co. combine for about 15 percent.

GM spokesman Tom Wickham says the company is monitoring the situation. Chrysler group spokesman Markus Mainka says the automaker is formulating a backup plan. Ford spokesman Paul Wood would not comment, but one Ford executive said, "This will be a disaster if they stop shipping."

Jayne Mann, general manager of Wortman Motor Co. in Aurora, Neb., relies on Allied to deliver vehicles such as F-150 pickups to her Ford dealership. She says dealers would have to go get vehicles from rail yards in the event of a shutdown.

"There's nothing worse than paying for a vehicle and having it sit in a lot somewhere," she says.

Cash crunch

To avert a collapse, Allied is trying to secure an additional $5 million from its lenders to operate in May. A previously negotiated extension expires Tuesday, April 18. In the emergency filing, the creditors said they would consider providing more money only if costs are slashed immediately.

The hauler got $230 million in credit lines from General Electric Capital Corp., Morgan Stanley Senior Funding Inc. and other lenders after filing for Chapter 11 reorganization in Georgia in July 2005. But it missed financial targets in December and January, throwing its financing in doubt.

The hauler is hemorrhaging cash. According to its most recent operating reports, Allied lost $2.8 million in February after losing $5.7 million in January. In December 2005 it lost $26.8 million.

GE Capital spokesman Ned Reynolds declined to comment, and Morgan Stanley officials could not be reached.

Allied CFO Thomas King didn't return four messages left by Automotive News last week. A message left with Allied's law firm, Troutman Sanders LLP in Atlanta, was not returned.

Allied's emergency filing for wage cuts would save the company $2 million a month. But the Teamsters say they'll oppose the motion and will consider a strike if it is granted. The union represents 3,500 Allied workers.

Said Fred Zuckerman, director of the Teamsters Carhaul Division, "We think that they're just playing a game with it."
 

·
Registered
Joined
·
1,421 Posts
Oh man...this is definitely not good news for those of us that aren't due to get our Skys until May or June. :nonod:
 

·
Registered
Joined
·
1,205 Posts
OMG, what else can happen???? I have been telling friends and family I will be getting my baby by my b-day in June, but now :confused:
 

·
First 2000 Sr. Member
Joined
·
1,570 Posts
seal9 said:
Just found this, Now what, will I ever get a SKY..:confused:
Said Fred Zuckerman, director of the Teamsters Carhaul Division, "We think that they're just playing a game with it."
That is the problem with unions now... so they would rather the company go belly up and they loose 3,500 members then loose a percentage of pay for a while so the company can reorginize.
 

·
Moderator Emeritus
Joined
·
2,238 Posts
todaresqSL2 said:
That is the problem with unions now... so they would rather the company go belly up and they loose 3,500 members then loose a percentage of pay for a while so the company can reorginize.
Perhaps they don't like being the fix for a problem that someone else caused? How much money goes out each month to the managers that got the company into the financial problems it's in?

I have to assume that the creditors are playing hard ball to increase their profit margins when the company is returned to health. With the market share this company has I just can't see the creditors letting the compitition just come in and take it all away.
 

·
Moderator Emeritus
Joined
·
2,238 Posts
This plus the parts supplier thing can't be good for some of us.:mad: Oh Well perhaps it wasnt't ment to be. Perhaps I'll change my order to the RL instead. I don't want this car if it doesn't arrive until December.
 

·
Registered
Joined
·
29 Posts
todaresqSL2 said:
That is the problem with unions now... so they would rather the company go belly up and they loose 3,500 members then loose a percentage of pay for a while so the company can reorginize.
I worked under a union for over 20 years (not by choice) and it's not the driver getting the fat paycheck. If there is a judgement to cut wages then it should go right on up to the top...not just the little guy.:nono:

Anyway, I hope something can be done to avert this so when we finally do get our cars built, we can get them here.:banghead:
 

·
First 2000 Sr. Member
Joined
·
1,570 Posts
I actually am part of a union... government employee = union.

While I would hate to take a pay cut, I would hope we *the union* could agree to a temporary pay cut if it would prevent everyone loosing there jobs. I also have issues with CEO's and other higher ups that make millions while asking their employees to take pay cuts. I love Ben & Jerry's ways of pay... the CEO is not to make more then 7 times more then the lowest paid employee. An example of what I dislike, is the old Rickel's Home Improvement chain. They brought in a CEO and paid him about 2 million a year to save the company. It failed, and everyone lost their jobs. The company said they didn't have enough to pay the last paycheck or two of their employees but still paid the CEO his 4 million or so dollar seperation fee which was in his contract. A friend of mine was a manager at a Rickel's store and never received his last paycheck.

While yes, unions can be a benefit, at other times they are too stubborn.
 

·
Registered
Joined
·
262 Posts
rick112 said:
Perhaps they don't like being the fix for a problem that someone else caused?
Apparently, they don't like being part of the solution either. And who said they aren't part of the problem anyway. If the competition isn't paying union scale, they operate with less cost. And you have to admit, the price of fuel going through the roof is catching up with everybody.

rick112 said:
With the market share this company has I just can't see the creditors letting the compitition just come in and take it all away.
If their money is secured by company assets, why not let them go out of business? What are they supposed to do, let them loose even more money until there is nothing left as collateral? Just my 2 cents.
 

·
Moderator Emeritus
Joined
·
2,238 Posts
Re organize from the top down! Did they fire anyone at the top?
 

·
Registered
Joined
·
1,421 Posts
todaresqSL2 said:
While yes, unions can be a benefit, at other times they are too stubborn.

:agree: 100%!!! I too, am part of a union (not by choice)...I work for a college (not a teacher, but part of the staff for 19 years). I have yet to see how this union has benefited me in any way. :mad: There are some employees of my college, who are exempt from the union and are getting paid just as much IF NOT MORE than those that are in the union...but without the resentment from the administration that those of us in the union have to deal with. They get the same exact benefits as us, but don't have to fight tooth and nail for it, when it comes time to renew the contract. Very frustrating. :banghead:
 

·
Registered
Joined
·
1,267 Posts
nscrbug said:
:agree: 100%!!! I too, am part of a union (not by choice)...I work for a college (not a teacher, but part of the staff for 19 years). I have yet to see how this union has benefited me in any way. :mad: There are some employees of my college, who are exempt from the union and are getting paid just as much IF NOT MORE than those that are in the union...but without the resentment from the administration that those of us in the union have to deal with. They get the same exact benefits as us, but don't have to fight tooth and nail for it, when it comes time to renew the contract. Very frustrating. :banghead:
I wonder where their salary and benefits would be if the union disappeared, not to mention your own.:)
 

·
Registered
Joined
·
105 Posts
The Ben and Jerry's method of pay sounded good on paper and generated some positive press for them, but they long ago decided they could not find the kind of person they wanted to run the company with such a limit. They have long ago abondoned this policy, but continue to get the good word of mouth attributed to it.
 

·
Registered
Joined
·
262 Posts
Trying to bring this thread back on track a little. My dealer just told me that historically, he has never seen a Allied truck deliver to his dealership. All that he has seen is Blue Thunder and Swift.

I guess that is a little good news for me anyway.
 

·
First 2000 Sr. Member
Joined
·
1,570 Posts
motocrash said:
The Ben and Jerry's method of pay sounded good on paper and generated some positive press for them, but they long ago decided they could not find the kind of person they wanted to run the company with such a limit. They have long ago abondoned this policy, but continue to get the good word of mouth attributed to it.
It worked great when Ben and Jerry were still in charge.. Ben & Jerry were not greedy, after all it was their own company and were happy with almost 300,000 a year. After the contest they held to get their next CEO, yes they changed their compensation for the new CEO.

dmbdlatc said:
Trying to bring this thread back on track a little. My dealer just told me that historically, he has never seen a Allied truck deliver to his dealership. All that he has seen is Blue Thunder and Swift.

I guess that is a little good news for me anyway.
Here, it is mostly Allied... next door, they use Swift for the SAAB's and Cadillac's...
 

·
Moderator Emeritus
Joined
·
2,238 Posts
Those who have problems with their union membership should try working in a non-union position for a while!:banghead: My first position was a union position. I quit and it took me years to get the same money and benefits as I had when I was unionized. There are problems with everything but strong unions are important.
 
1 - 17 of 17 Posts
Top