GM And Allied Systems Embroiled In Dispute
Several hundred cars manufactured by General Motors that should be on their way to various car dealerships all over the nation are stuck on a lot in Michigan. From time to time automakers have to deal with delayed deliveries because of inclement weather, however, it is the the delivery company that is purposefully refusing to make good on its promise. The trouble began when Allied Systems started to look for different ways to save money on increasing fuel costs. After a failed attempt to cut the pay of its employs, which was blocked by union organizers who vowed to protest, Allied Systems turned its attention to the automotive industry. Although General Motors has a contract with Allied Systems, they attempted to increase the costs associated with vehicle deliveries. Caught up in the turmoil are the drivers that work for Allied Systems. They have been out of work for several days now, and they fear that a long-term legal dispute could possibly cost them their jobs.
Although it is understandable that a transportation company would want to come up with a way to cut operational costs, that is no reason to virtually hold freight hostage. Car dealers and their customers have absolutely no idea when they will be able to receive their vehicles, which is only hurting the automotive industry even more. When Allied Systems finally releases the vehicles in question it is very likely that General Motors will begin to look for a new company to do business with in the future.