Allstate Prevails in Labor Ruling Prohibiting Agents from Collective Bargaining

December 3, 2002

Allstate Corp. emerged victorious in a ruling from the National Labor Relations Board declaring its exclusive agents independent contractors rather than employees – a decision that prohibits collective bargaining, according to the Associated Press.

NLRB Chicago Regional Director Elizabeth Kinney decreed that agents are contractors because they hire their own employees, advertise themselves and decide the amount of work they will assume.

The Office & Professional Employees International Union had pushed for a ruling declaring agents employees.

Allstate proclaimed a reorganization in 1999, redesignating some 6,500 agents as contractors as opposed to employees. The cost-cutting move removed some benefits for agents, but grew commissions for insurance sales.

In a statement, Allstate reports it will continue an open line of communication to address agents’ concerns.

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