Plan formed to keep Allied afloat

| 5/10/2007

Teamster union employees of the bankrupt Allied Holdings have approved a company reorganization plan that requires appointment of a new CEO and board of directors.

A Teamster press release says the agreement will save 3,300 union jobs by keeping the company afloat.

The agreement also calls for the Teamster employees to accept a 15 percent wage cut that will last for three years, but assures they’ll be paid health and pension benefits.

Allied – which owns one of the nation’s biggest car-hauling fleets – declared bankruptcy in 2005, citing slumping U.S. auto sales as part of the reason.