- Jun 16, 2008
Strike against No. 2 car hauler puts it out of business
The strike last week by the International Brotherhood of Teamsters (IBT) against Performance Transportation Services (PTS) was the straw that broke the camel's back. The second largest car hauler in the United States was unable to survive the wage-related dispute, especially after filing for bankruptcy protection in 2006 and 2007. On Friday, PTS announced that it's stopping all operations and going out of business.
The effect on the industry overall will be minor. Automakers began rescheduled their deliveries last week when the strike was announced. As domestic vehicle production has slowed, excess transport capacity has been able to take up the slack and no major interruptions have been seen. It seems the striking workers have also been accommodated as the Teamsters are reporting that the "vast majority" of their 1,250 drivers have found work at other unionized locations. Still, any organized union thinking of striking in this economic climate should consider the possibility that such a move may result in pink slips for everyone.
[Source: Automotive News, subs. req'd]