The National Association of Professional Allstate Agents (NAPAA) is looking to unionize as independent Allstate agents accuse the insurer of unfair treatment. Agents are claiming that the company is manipulating independent contractor rules for their benefit as well as reducing compensation for agents. The association, which accounts for nearly 10% of Allstate’s agent force, will be holding votes over the course of the week to determine whether aligning with a union is in the best interest of its members.
If members choose to unionize, the NAPAA will become affiliated with the Office and Professional Employees International Union, through which they will be afforded greater access to lobbying and legislative resources. The association will also gain negotiation leverage over the insurer in the form of collective bargaining. This will help agents pursue matters that are in their best interests rather than waiting for the insurer to weigh in on the issues.
Allstate has yet to show any signs of concern regarding the matter. Given that the NAPAA accounts for only 10% of the insurer’s agency force throughout the country, it is unlikely that the company will move to placate agent’s concerns. Indeed, what may be taking most of the insurer’s attention is the wave of lawsuits coming from long-time agents who were recently terminated.
Paul Mattus of Pennsylvania and Mario DeLuca of New Jersey, both former Allstate agents who have sold insurance policies for the company for years, are among those filing suits against the company. Both are suing the insurer on the grounds of contract breach and unfair practices.
More information regarding NAPAA’s move toward unionization can be found via the association’s website.