• Jun 16th 2008 at 5:32PM
  • 31

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]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 7 Years Ago
      Thank you for showing how unions "protect" jobs.
      • 7 Years Ago
      "The effect on the industry overall will be minor. " Tell that to all those who are now out of work. Unions served their purpose many years ago, not now.
      • 7 Years Ago
      Im sorry for the non union workers of PTS. Some might argue that they are white collar workers that make much more money...not always. At UPS if you go from working on a loading dock to a PART TIME supervisor (atleast when I was working in the Palatine Illinois facility in college) you were booted from the Union. These guys made barely 1200 a month and were salary. So you better bet they worked more than part time. Yet they weren't union. If UPS were to have a major strike and somehow go out of business, you know who would lose? Yeah, the "white collar" guys making less than a "blue" collar driver.

      Screw a union. I'll vote for the first politician that says they'll fight to break the unions. All they do is breed mediocrity and milk companies for money to line their own pockets at a minuscule increase to the earning of those the "represent".
        • 7 Years Ago
        Well to be honest if you need a reason to vote against Obama he is leaning on supporting legislation you make union votes public events. In other words, no more voting to choose a union shop in secret. All votes will be made in front of intimidators, err witnesses.

        Yeah, lovely change that we are about to see. I am hoping the Supremes knock it down fast if it makes it out of Congress. Of course there isn't much hope McCain wouldn't vote for it either.

      • 7 Years Ago
      I think you guys should stop picking on unions. They are entrepreneurs trying to make a living by engaging in good old fashion extortion of businesses and fear tactics to keep the members in line. The only alternative is to work for a living, and who wants to do that?

      I just feel sorry for the poor misled union members. They don't seem to be aware that their own leaders are screwing them.
      • 7 Years Ago
      I love it, unions sucks, bunch of lazy good for nothings. I hope it spreads. Useless workers.
      • 7 Years Ago
      Buzz Hargrove, are you listening?
        • 7 Years Ago
        Oh get out, GM's the one at fault in what's happening here.

        You don't make promises you can't hold.

        If I break my lease agreement my credit's ruined, why could they break the work contract and step-out as if they were never here in the first place?

        If they want to leave, they'll have to pay.
        • 7 Years Ago
        Your credit may be ruined, but you can come back in a few years. Company shutting down doesn't come back after a few years.
      • 7 Years Ago
      A picture of one of the now out of work union employees can be found here...

      • 7 Years Ago
      Cool, now the company is gone, the workers will most likely be going to lower-paying and/or non-union jobs (that is the reality), and the union has killed part of itself.

      • 7 Years Ago
      I wonder if the shareholders of PTS could sue the striking union workers for destroying their investment.

      It's clear that the union workers were not exercising their duty to maximize profits for the shareholders.
        • 7 Years Ago
        Good idea. If Explorer owners can sue for lost value due to tread separation, there is definitely a case there.
      • 7 Years Ago
      Another nice move from the leeches, sorry, unions. Sorry boys, but you haven't been relevant for 30 years, and your continued existence is nothing but a parasitic drag on the US economy. You'll probably kill what's left of the US auto industry, then you'll gather in bars with the rest of your loser friends and whine on about how "management" took your jobs away.
      • 7 Years Ago
      Smooth move ExLax!
        • 7 Years Ago
        unions when the vision goes astray become killing machines.
        they have become major handicaps for the companies they have been forced upon.
        We are hurting ourselves when we have to compete with companies that are free from that burden.
        the more that the suits and execs in charge can grow up and stop selling their employees and companies down the river for a "splash-in-the-pan" dash to retirement and a half point of stock increase.
        if it was not for the unreliable, greedy people that often abuse the power they are supposed to be stewards of, we would not have this mess we are in.
        Each of us can have a mighty impact on one another and impress our fellow person to strive for the best (even if they are our leaders), in honesty, doing the the right thing, personally sacrificing for one another.
        the more this happens, the better everything will be. jobs will be more plentiful, and difficulties in every facet of life will be fewer.
        Those in leadership need to prove their servanthood in more dynamic ways as the end result of their current greed is desolation for them as well as us.

        We simply cannot sustain the endless barrage of sell-offs, shut-downs and out-sourcing. it must change now. we all need to realize that we are on this team called America, and there is great benefit from working together to improve things, rather than tearing them down.
        It just doesn't make sense to keep on this path that misguided corporate wisdom as been on. it is time to about-ship and rebuild America - one person, one company at a time.
        • 7 Years Ago
        Nice move Ace...
        • 7 Years Ago
        This exact same effect is happening to schools all over the country, caused in large part by teachers unions forcing the status quo.
      • 7 Years Ago
      UAW and CAW, take note.
    • Load More Comments