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The Office & Professional Employees International Union Assists The National Association Of Professional Allstate Agents Legal Fund/Supports Agents Lawsuit Against Allstate’s Efforts To Terminate Profitable, Long-Standing Agents

Published Wednesday, November 23, 2011 5:00 pm
by OPEIU News Service

(NEW YORK) - The Office & Professional Employees International Union (OPEIU) is assisting the National Association of Professional Allstate Agents (NAPAA) in their fight against the Insurance Company Allstate's efforts to terminate profitable, long-standing agents who don't meet the company's arbitrary Expected Results.

OPEIU, with which NAPAA affiliated with in September 2011, has pledged to match dollar-for-dollar individual agent contributions supporting the effort, up to $25,000.  New Jersey Allstate agent Mario DeLuca, a 42-year company veteran who amassed scores of company awards and honors during his career, soon became the face of the lawsuit after he was notified that his contract would be terminated.  Additionally, the fate of other New Jersey agents under threat of termination hinges on the outcome of the case.

"Allstate is terminating an unprecedented number of agents for failing to meet its arbitrary performance goals," said NAPAA Executive Director Jim Fish. "There’s obviously something wrong when twenty to thirty percent of the agency force can't achieve these company-imposed quotas, especially when they realize their careers are at stake."

After decades of happily taking the profits that its agents generated, and terminating agents only for compliance issues or egregious conduct, Allstate has upped the ante by demanding more and more production from its agents in recent years.  As more agents fell behind, the company began firing them in ever-increasing numbers.  While no one outside the company knows how many have been fired, NAPAA believes it could be 3,000 or more under CEO Tom Wilson's leadership.

"Mario DeLuca could stand in the shoes of almost any agent," Fish said. "His loss ratio is forty-four-percent, and his retention is at ninety-two-percent.  Yet, he’s being terminated for allegedly failing to sell a few thousand dollars worth of life insurance and for not sufficiently stemming Allstate's protracted slide in auto insurance."

The lawsuit is designed to subject Allstate to New Jersey's demanding franchise laws - which prevent termination of franchise without good cause and that prohibit unreasonable standards of performance - as well as to scrutinize, and hopefully reform, the company's unreasonable Expected Results quotas.

The lawsuit is now in the critical discovery stage and DeLuca's attorneys' have obtained thousands of pages of documents from Allstate New Jersey that show that the story of Allstate's Expected Results differs greatly from the one told to agents, officials said.

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