NORTHBROOK, Ill., Dec. 28 /PRNewswire/ -- The Allstate Corporation
(NYSE: ALL) announced today that it is disappointed with the Equal Employment
Opportunity Commission's (EEOC) decision to file a lawsuit against the
Allstate Insurance Company following its reorganization of its agency system.
"Allstate values its positive relationship with the EEOC and believes that
we are both committed to the same goals of equal opportunity and work force
diversity. In fact, Allstate has been recognized on many occasions for this
commitment and its employment practices," said Rick Cohen, president, Allstate
Property and Casualty.
The EEOC has taken issue with the use of a release, one aspect of the
Allstate agency program reorganization implemented in 2000. Releases are used
routinely in the American workplace in connection with business
reorganizations and have been consistently upheld in court. The company
disagrees wholeheartedly with the EEOC's position on the release and intends
to vigorously defend the lawsuit.
"The Allstate new business model strategy and agency program
reorganization were designed to meet the increasing demands of our customers,
jump-start growth and make it possible for every agent to share in the success
of the company. As a result, both Allstate and our agencies are better
positioned for success in an increasingly competitive environment. The
Allstate Exclusive Agency program is consistent with the structures of many of
our major competitors.
"Under the Allstate enhanced Exclusive Agency program, agents are
economically advantaged through an increased commission structure, commission
opportunities from direct channel sales, the ability to purchase agencies, a
stock bonus plan, the ability to grow a transferable equity in their business,
the ability to run satellite offices, local agency extensions and the ability
to run other businesses," said Cohen.
The EEOC maintains that conditioning certain financial benefits, including
the opportunity to participate in Allstate's most successful agency program,
on the signing of a release constitutes retaliation under various federal
employment laws. Allstate denies any allegations of retaliation.
All 6,200 employee agents had the opportunity to become Allstate exclusive
agent independent contractors. The majority of those agents decided to take
that opportunity. Most of the company's agents were already independent
contractors at the time of the reorganization.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer. Widely known through the "You're In Good Hands With
Allstate(R)" slogan, Allstate provides insurance products to more than
14 million households and has approximately 13,000 exclusive agents in the
U.S. and Canada. Customers can access Allstate products and services through
Allstate agents, or in select states at allstate.com and 1-800-Allstate.
Encompass(SM) and Deerbrook(SM) Insurance brand property and casualty products
are sold exclusively through independent agents. Allstate Financial Group
includes the businesses that provide life insurance, retirement and investment
products, through Allstate agents, workplace marketing, independent agents,
and banks and securities firms.
SOURCE Allstate Corporation
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Related links:
http://www.allstate.com
http://www.prnewswire.com/gh/cnoc/comp/109885.html
CONTACT:
Mary Alice Horstman or Bill Mellander, of
Allstate Media Relations, +1-847-402-5600
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