NU Online News Service, July 19, 1:47 p.m. EDT
An Allstate agents' group is asking members to vote on aligning itself with a union and forming a guild in its fight against what it says are unfair business practices toward agents by the company.
The National Association of Professional Allstate Agents Inc. (NAPAA) says it is asking members to vote on a proposal for the association to affiliate with the Office and Professional Employees International Union (OPEIU) as a guild.
“Agent morale at Allstate has hit rock bottom, which cannot be good for the company, the agents, or the shareholders,” says Jim Fish, NAPAA executive director, in a statement. “This is not a matter of political philosophy; it's a matter of defending the interests of ill-treated small-business owners.”
The decision, NAPAA says, was made after “an enthusiastic response” from those attending a recent association meeting of the board.
Fish says ballots are to be mailed out soon and will be administered by the American Arbitration Association. The results will be announced soon after they are counted on Aug. 17.
Fifty-one percent of the membership must vote in favor of the proposal, Fish tells NU Online News Service. He says NAPAA represents 12 percent of the Northbrook, Ill.-based carrier's agent workforce.
The OPEIU represents 125,000 employees and guild members and is affiliated with the AFL-CIO. If affiliated, NAPAA will be granted membership in the OPEIU, the national AFL-CIO and all State Federations of Labor, “giving the agent group better access to legislative assistance and legal expertise.”
Fish says the affiliation will not give the group collective-bargaining rights, but he says NAPAA feels it is the best way to protect agents. With the backing of more than 11 million AFL-CIO members, he indicates that the collective clout could have some impact on company policy in the future.
“The corporation is taking advantage of agents, and you just have to defend yourself,” says Fish. “The company has been firing agents for little or no reason,” focusing on older agents—and that is causing stress within the agency ranks, he adds.
“With more clout with the company, more members may join NAPPA; and with more members, the more the company will listen,” says Fish.
Allstate agents were once employees of the company, but in the late 1990s they were fired and re-hired as independent contractors. Since then, there has been an ongoing feud between certain agents and the company over the relationship, with NAPAA contending that agents are treated like employees despite the fact they are independent contractors, a point the company has disputed.
The latest round of acrimony began when Allstate revealed plans to consolidate smaller agencies' books into larger ones for the sake of efficiency. It also plans to cut agency commissions on new and renewal business, but increase variable compensation for obtaining certain business goals.
This also marks the second time an attempt was made at unionization of Allstate agents. In 2002, a terminated agent and NAPAA board member sought to unionize agents, but the plan went nowhere.
A request for comment from Allstate was not immediately returned.
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