Getting rid of employees is nothing new to Allstate. They got rid of over 6500 agents in 2000 and let them choose to be independent contractors for Allstate or hit the road. Higher commissions were offered and many agents had too much invested to leave, so the majority of agents chose to convert to independent contractor status. Allstate cut commissions below what was in place soon after the conversion. Having higher expenses with less commission was not Allstate's problem. Then Allstate did away with the promised General agent status. Then Allstate required agents to hire additional staff and raised the production requirements. Even though agents were independent contractors, Allstate forced agents to behave like employees by mandating how and when they had to work, mandatory meetings, direct involvement in the agents business. Lawsuits were presented by an agents advocate group but Allstate found ways to avoid involvement and prosecution. Ed Liddy even had to go before a Senate hearing but nothing positive came from that to those that were affected.. This new layoff situation is awful for the dedicated employees and agents and i truly wish them well. Allstate has lost ground over the years falling from the number 2 insurer in the country and will continue the slide.
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This is completely not true.
Obviously you are an agent and am not sure why you are posting on this site. Just FYI....majority of those that did convert are glad they did and are making a lot of money. I personally know of agents that left in 2000 and wish they never had. You can either look at this as I make a lot of money and have the ability to do whatever I want as an agent...in fact I have an unlimited pay check or you can say you were screwed and are owed more. Not sure why you would think you are owed anything...you have an unlimited paycheck and can control your own time an destiny. Don't really care about what happened in 2000.