Teamsters strike against nation's No. 2 car hauler over wages
Performance Transportation Services (PTS), the second largest car hauler in the United States, is being hit by a strike from the International Brotherhood of Teamsters. The walkout began this morning after a bankruptcy court granted PTS permission for a 15-percent emergency pay cut to the workers.
The Michigan-based transport company has been in trouble for years. Once hired to move upwards of 2.7 million vehicles per year, including 10,400 vehicles per day for General Motors, PTS filed for bankruptcy protection in 2006 and in 2007. Now, with the automotive industry in a slowdown and diesel fuel prices skyrocketing, it needs wage concessions to remain afloat. Without any proposal on the table, the Teamsters walked off their jobs at 24 different facilities this morning. Both Ford and General Motors, who count themselves as clients of PTS, have said publicly that the strike won't immediately affect their shipments of vehicles across the country. PTS also handles some shipments for Toyota and other automakers, all of whom are working on contingency plans in case the strike goes on indefinitely.
[Source: The Detroit News]












Reader Comments (Page 1 of 3)
Chris 3:39PM (6/09/2008)
I have to agree with the strike for one reason, wage concessions are only being demanded of the drivers, not any other worker.
FWIW, autonews registration is free so don't bypass that great source of news in this industry
Reply
mk 3:47PM (6/09/2008)
Yeah.
Striking against a company in emergency near-bankruptcy status is a GREAT idea.
Object lesson in striking yourselves out of a job, when the company fails.
And did it ever occur, that perhaps none of the other workers are unionized, and probably have forgone pay raises for a good long time, and probably can't be paid much less than they already are.
The teamster's Union contracts probably make up the lion's share of this company's payroll, and labor costs are probably the far and away majority cost of business, and the second being diesel fuel, which is also pinching business very hard.
This company will likely evaporate in very short order under this strike, and then there will be an even bigger problem.
Reply
Geeky1 3:51PM (6/09/2008)
Ah, but see, this is what unions excel at in today's world: they take a small problem and turn it into a very large one.
johneboy 3:54PM (6/09/2008)
If your average worker can't make a fair wage, shut it all down. Who is going to buy these cars when 95% of the population gets Wal-Marted into minimum wage. Go Teamsters!
mk 4:12PM (6/09/2008)
@johneboy...
Get a clue. Buy one if you have to.
Your average worker is suffering because your average teamster, UAW worker, and other unionized workers are selfish, and costing the employer too much, sometimes to the point of bankruptcy.
Then those "average workers" *have* to shop at walmart to get low enough chinese-made prices to be able to afford what they need.
Then, when the employer goes under, everyone is out of work, and "it is all shut down", everyone is out of work, which is worse for the local economies, and contracted clients also suffer who relied on the now-bankrupt company's no-longer-offered services.
So I take it that you like rampant unemployment, and bankruptcy, and all sorts of negative economic ripple-effects. Yeah, go teamsters, put everyone out of business. Maybe walmart will hire the unemployed teamsters at minimum wage, when they are unemployed.
Get a damn clue, honestly. Selfishness and ignorance is a grotesque pair.
jgp 5:40PM (6/09/2008)
Unskilled laborers are not the target customer base.
Professionals with actual skills are the real middle class, and the real customer base in America.
Unskilled laborers should always be at the very bottom of any society.
Aprime 8:43PM (6/09/2008)
"Your average worker is suffering because your average teamster, UAW worker, and other unionized workers are selfish, and costing the employer too much, sometimes to the point of bankruptcy."
Stop defending an industry that's accepted their ways in the first place. -_-
URRR THEY SELFISH, well f' they have right to be, wages only make a tiny bitsy portion of a car's MSRP. Unions aren't responsible for the automakers' ridiculous decisions and product planning over the last 2 decades, why should they have to pay for it? Because otherwise they'll lose their job? Why isn't the management losing their jobs then, since they're responsible for the situation the automaker's in?
Think outside the box, they might be selfish, but they have a God damn reason to be. We're not talking about the teachers' unions here, but auto workers who have no to little responsibility to take in what's happened over the last two decades (the so called 'shift').
That's like having the captain of a sinking ship eliminating its crewmen one by one because he decided to sail in troubled seas.
Aprime 8:50PM (6/09/2008)
And even with all those concessions they make, their jobs aren't even guaranteed (even if GM said otherwise and is breaching the contract - resulting in future litigations, which aren't going to get GM anywhere - breach of contract cannot be justified by a changing market, they'll have to choke this one up - Wagoner sucks so hard). Made up example: You hand them your retiree plan in exchange for a guaranteed job and they just say 'well the market's changing so disregard the deal we've made... But I'm still taking your plan with me.
Things like this are a public relations disaster for GM, you have no idea what kind of hit they're going to take in Ontario. What feeling do you get when the US automaker bails out and the Japs come back in and save the day by building more NA plants and offering jobs? Yeah, what I thought.
You want to protect your economy but at the same time you refuse (I'm not saying that without unions you can't protect workers, but they still do a better job than singled out people who have no chance against a corp. when an injustice is made) to protect your workers, sweet mixed message you're giving there.
mk 9:12PM (6/09/2008)
@APRIME,
READ THE ARTICLE.
They are striking against a shipping company, not GM.
I hardly think they are being mistreated.
Take your pick. Unions can take their lumps or lose ALL their jobs. Everyone else has to play by the rules.
The bullcrap argument about mis-management doesn't hold water. Management of this shipping company, GM, Ford, or whoever else, want to keep the doors open, not screw their workers.
It seems like unions, UAW and Teamsters, and whoever else, want to cut off their nose to spite their face, and want to amputate the hand that feeds them. That is not an understandable position, it is selfish, greedy, and will end up doing FAR more damage than anything else.
elprogramer 11:36PM (6/09/2008)
Without knowing too much of this strike action, it appears as though their employer ended their contract. You can't just walk out whenever you feel like it; there are specific legal obligations.
But I suppose it's different cultures, but when you can least afford a strike is exactly when you have to go out. You can't let your fears get the best of you, otherwise management will get too much.
But it doesn't matter: nobody gets something for nothing in this business. Wage concessions come with other benefits, just as those wage increases came with more managerial leeway.
Austin 3:59PM (6/09/2008)
My Dad is a former teamster and he is pissed at the teamsters!
Reply
Alex 4:05PM (6/09/2008)
eff'in unions...
Reply
John P. 4:12PM (6/09/2008)
Just like free healthcare and social security, people today think they are entitled to a high paying job for life. Tip, it's in everyone's best interest for a company to make as much money as possible so they can survive during lean times. If you don't like that, don't buy from them, or if you work for them and don't like it, go find another job or start a business.
Or do like Obama does, and run for office so you can visit all "57" states, happily spending other people's money. Yeehawwww!
Walking off the job at a near-bankrupt company. Sounds to me like the Union is looking for ways to dump their pension obligations to a lot of gullible workers who have been sold Ugly Big Corporation Neo-Communist Crap for too long.
Reply
Derek 6:16PM (6/09/2008)
"people today think they are entitled to a high paying job for life"
You mean a high paying, low skill job with frequent breaks.
Gardiner Westbound 4:12PM (6/09/2008)
Something is missing from the story.
Presumably surplus drivers have been laid off. Other transport companies recover increased diesel costs through fuel surcharges. Why should drivers absorb the cost?
Reply
mk 4:19PM (6/09/2008)
Because everyone else probably has absorbed the cost already, and they are still not making ends meet.
Why should the teamster drivers be INSULATED from what everyone else has to deal with?
Union labor is MUCH more expensive than non-union labor.
Contracts have probably been signed in advance, with agreed price. Fuel costs, inflation in every other product required to perform that work has also increased, as well, and someone has to absorb that cost increase under the agreed contracted terms. Everyone BUT the Teamsters have probably already been hit by this.
Re-negotiating union contracts isn't exactly a walk in the park, as we can see. I am sure that it isn't a first-option. It is probably a hail-mary pass, last-ditch effort to stay above water, and continue doing business in any way, shape, or form.
They wouldn't have risked a strike like this on a whim, and they probably have no other recourse left.
RSR 4:16PM (6/09/2008)
Putting the final nail on the coffin.
Reply
kh 4:32PM (6/09/2008)
Here is what is missing from the story - common sense from the Teamsters! There are no surplus drivers on layoff. Drivers are on layoff due an abuse of the Work Comp system and running the company into the ground at 2 major locations in California. Those drivers still have to be paid.
The Teamsters voted for a strike and then want to complain about it when it actually happened. What about all of the other employees who didn't get to vote?
Funny how Hoffa didn't have an issue with Allied asking for 17 1/2% wage cuts. The Allied drivers were able to vote for the pay cuts but the Teamsters also allowed them to vote for a pay cut for the PTS drivers and give each Allied driver a $2k bonus for doing so.
Reply
inteller 4:52PM (6/09/2008)
I have a great idea. Start FLYING people out to the factories to pick up their cars. Even a one way ticket is still cheaper than paying these a holes to transport it.
Reply
RLQ 5:05PM (6/09/2008)
Teamsters are bunch of thugs.
Reply