Let's Vote On Union: Allstate Agents Assn.
By Mark E. Ruquet
NU Online News Service, July 8, 2:30 p.m. EST?The Allstate agent's association said it remains neutral in the effort by Allstate's direct agents to form a union, but urged the agents to sign a petition that would allow for a vote among members on the issue.
In its July 3 newsletter, the Canton, Mich.?based National Association of Professional Allstate Agents said its membership passed a resolution saying it would not take a position on exclusive agents forming a union, but would support the agent's right to file for a vote.
The resolution came as friction and lawsuits between the agents and the company have grown. An Allstate spokesman portrayed the unionization effort as impermissible under federal regulations and misguided.
The resolution was passed during the NAPAA convention held June 20 to 22 in New Orleans, said Rod Guilmette, an association spokesman.
Mr. Guilmette said he was told the signature of about 4,000 exclusive agents would be needed before the National Labor Relations Board could certify a vote. The issue could affect between 10,000 to 11,000 agents throughout the U.S., he said.
"We are curious to know how they are going to organize since they are not employees of the company," said Michael Trevino, an Allstate spokesman. He said that, according to information he had from the NLRB, only employees of a company could organize a union,and the agents are not employees, but independent contractors.
He called the efforts by the agents "misguided" because of their independent contractor status.
The effort to unionize is being lead by John B. Bryant, a NAPAA board member and former agent whose contract was terminated by Allstate in April. Mr. Guilmette said Mr. Bryant is abstaining from all matters related to questions about the unionization effort during the board's discussion.
NAPAA also reported that its president, Jim Fish, was also terminated by Allstate.
Allstate has said the company continually reviews agent performance and made the terminations based on the failure of the agents to meet the Northbrook, Ill., company's business expectations. Both men have been outspoken critics of the company's business practices.
The agents have been feuding with the company since 1999, when Allstate decided it would restructure its 6,000-member agent workforce, changing their status from direct agents to independent contractors exclusively selling Allstate products. There are more than 13,000 exclusive agents, said Mr. Trevino.
The company's move has resulted in a number of legal challenges. The Equal Employment Opportunity Commission has filed a lawsuit over age discrimination charges against Allstate. NAPAA has also filed suit on behalf of agents in Florida, charging that the company continually changes the terms of its direct agent's agreement, increasing the agent's sales quota.
In a Florida case brought by five agents in U.S. Federal Court, Middle District of Florida, (Hogan, et al v. Allstate Insurance), the court found in favor of the company, said Mr. Trevino. In the case, decided at the end of June, the independent contractor-agents were seeking overtime compensation from Allstate. The court decided that they were exempt employees.
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