who is the redheaded stepchild of allstate's Distribution system?

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feature A Brief History of the Allstate Agent Union Movement circa 1975-2002 By Edward Erbacher It was March 1961 when I started as an employee agent working in Manhattan. I was the first agent hired directly into a sales office rather than a Sears booth. Allstate was 100% owned by Sears at that time. As an employee agent in a sales office, Allstate paid for all office expenses, furniture, equipment, rent, plus a secretary. At that time there were 4 to 10 agents per location. We were on duty every other day. The out-of-office days were for appointments, canvassing for new business or maybe a round of golf with a fellow agent or preferred client. Commissions were 15% on new business, and 6.5% on renewals. We also received fairly generous employee benefits. Allstate rates were very competitive at that time. In the early and mid ‘70s, there were some very negative changes taking place that affected management’s attitudes and actions toward the agency force, not unlike the troubles facing agents today. As a result, union movements broke out in Florida, St. Louis, Chicago and California. Naturally, management kept this news quiet to prevent a chain reaction across the country, but in New York, we learned about these movements and sent funds to help. Several union movements went to the National Labor Relation Board (NLRB) elections, but none were successful. Then in 1975, we started our own union drive in New York in two downstate Allstate regions – New York City and the surrounding counties – which totaled more than 600 agents. The campaign lasted for three years because we filed 28 unfair labor practice charges. This delayed the process as the charges made their way through the NLRB courts. The charges were against management and included then Allstate President, Bob Sheppard. The company was found guilty of most of the charges and many were appealed by Allstate. Very few of the charges were dismissed. At last, the election was held and the agents voted 327 to 314 in favor of the union. We then had one year to bargain. If an agreement was not reached, the company could impose a contract, which it did. It was dubbed the “Blue Book” and the agents dreaded it. It was so oppressive; we estimated that 90% of the agents would be fired for not meeting expected results during the first year of the contract. The alternatives were to strike and close our offices (an idea with little support), file a bargaining in bad faith charge and charter buses to make our case at NLRB headquarters in Washington, D.C., or decertify the union. At an overflow meeting in Long Island, the vote was to decertify. In exchange for decertifying, an agent appeal board was created for agents who were about to be terminated. The review board consisted of both agents and management. It was a victory for the agents because many terminations were overturned in the ensuing years. During the four-year period of the union, management could make no changes or impose budgets (quotas) of 18 — Exclusivefocus Winter 2011/2012
any kind. Everything was suspended. Management’s behavior toward the agents was acceptable for several years after the union decertified, but in the early 80s they felt confident enough to resume their intimidation and highhanded tactics. Our union had no affiliation, which probably was a mistake. However, this was done deliberately to gain agent support as small independent business owners. In the late 80s, agent resentment grew again. With the rise of Wal-Mart, Sears began its decline and Allstate became a “cash cow” for Sears. Seeking to prop up profits, Sears began to pressure Allstate management for greater profits. In 1992, an Alabama agent, Jud Bentley, filed a motion at the annual shareholders meeting and in a stentorian voice, asked Sears to divest Allstate. The vote was 44% in favor of divestiture. Shortly thereafter, Allstate was spun off and things got worse for the agency force, because Allstate management now had a free hand. In 1989, I received a call from Florida agent Jim Cason. He proposed that we Allstate’s history is fraught with instances of agent angst and unrest due to management ultimatums. “ state Agents (NAPAA). As you can see, we are still alive and kicking and we are the only voice for Allstate agents. There is no other organization more dedicated to serving Allstate agents than NAPAA. NAPAA President Robert J. Isacsen and Jim Fish, executive director, are successful former Allstate agents who are heavily involved in running this growing organization. Jim was a “star” agent who start a non-certified association and the National Neighborhood Office Agents Cub (NNOAC) was born. NNOAC would later change its name to the National Association of Professional All- “ was fired after he took on then Allstate Chairman Ed Liddy at the 2002 Allstate shareholder meeting. These two NAPAA leaders do not fear Allstate and their only goal is to make sure every Allstate agent is fairly treated. Agents today face many challenges, including Allstate’s vice-like grip over its agencies and the possibility of reduced commissions. But as a veteran and retired Allstate agent of forty-four years, this kind of behavior is nothing new. As you can see by the partial list of experiences contained in this short article, Allstate’s history is fraught with instances of agent angst and unrest due to management ultimatums. I urge agents to remain vigilant. While the company may appear to be backing off and playing nice, I predict they will return with even greater demands. Some things just never change. In closing, my hope is that the current Allstate Board of Directors has the guts to stand up to Tom Wilson and send him packing. Ef By Edward Erbacher, former NAPAA director, Union VP and retired Allstate agent Winter 2011/2012 Exclusivefocus — 19
Page 1 and 2: New Facebook Changes Creating Celeb
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Page 6 and 7: president’s letter NAPAA/OPEIU Gu
Page 8 and 9: NAPAA Board of Directors 2011-2012
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