Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, UAW/Unions
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]
Reader Comments (Page 1 of 2)
Crashmaxx 5:38PM (6/16/2008)
Smooth move ExLax!
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Goat Law 6:19PM (6/16/2008)
This exact same effect is happening to schools all over the country, caused in large part by teachers unions forcing the status quo.
SITEiNK 1:01AM (6/17/2008)
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.
Rocketboy 8:29AM (6/17/2008)
Nice move Ace...
HotRodzNKustoms 5:46PM (6/16/2008)
This is the problem with unions. They'll put their members out of a job over a bit of a wage increase. Now those members who they were "fighting to protect" are now unemployed. There was a time and a place for unions and that time and place has passed.
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SamKochel 5:52PM (6/16/2008)
I teach econonmics and I so agree with you on this one. Unions are not that important in competitive job markets where labor has chances to move and move up Quick funny story:
I went to go watch the clerical workers for our city government here in Ventura County hold a union rally asking for a "living wage" whatever that means ;) I walked among them and talked to them (just asking questions) and one lady complained that they need a "living wage" because "all there best people keep leaving." Hahaha. Yes, and all the best people from McDonalds leave and when my former girlfriend quit being a cashier at Barnes and Noble to become a teacher her manager told her "all the best people leave" too. Of course, ambitious, smart, can-do people will not settle with those jobs and to create an environment where they do is to rob America and us all of so very much productivity. If truck drivers want more money go to college and become an engineer or something, just like my students do when they quit McDonalds. Anyway, you hit a little nerve with me, obviously. Poor drivers who lost their jobs.
Aprime 6:54PM (6/16/2008)
I'd just like to point out that the Teamsters have a bad reputation abroad, even with pro-union people or union members.
I'm not the kind of guy that blames the big 3's problem on the UAW like many of you do, though they have to take part of the blame, they're not responsible for 90% of the problems they're facing.
Ian 10:33PM (6/16/2008)
Replay to "SamKochel " up there: and you wonder why your city governance is so crappy or why the people who do the work suck? Or perhaps there is a case where people want to worn in government AND get paid some reasonable salary for doing so?
Of course those who are great move on to better things. What the city in your case should do is find a way to retain great talent and jettison the slackers.
Unfortunately most unions make that very difficult so in a dynamic economy the union ends up protecting the losers.
Bob Not 12:13AM (6/17/2008)
Sam, you aren't convincing anybody when you just come across as an anti-tax zealot. You can't complain about the job they do and then not fund them because only poor people do that kind of job. You want quality government, pay for it -- within reason.
gholland 4:51PM (6/17/2008)
@Bob
It doesn't matter whether you pay higher wages or not. The government does not hire based on merit! The government hires (and conversely doesn't fire) those who fit the quota's; i.e. right skin color, gender, longevity as a government employee at one agency or another, etc. With that in mind, why would anybody pay more to a government employee? Many are terrible, some may be good. The good ones leave, not because of pay, but because working for the government is mostly miserable.
sam 5:47PM (6/16/2008)
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.
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Luis 5:47PM (6/16/2008)
"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.
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henrykrinkle 5:54PM (6/16/2008)
"...the Teamsters are reporting that the "vast majority" of their 1,250 drivers have found work at other unionized locations."
And they vow to never rest until those locations are driven out of business too.
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Papi L-Gee 6:06PM (6/16/2008)
Sounds like a virus to me...
Corey W. 12:07PM (6/17/2008)
I think they're lying about that, you trying to tell me you can just get the "vast majority" of the workers jobs that quick....hummm, sounds shady!!
MajorGeek 5:59PM (6/16/2008)
I think you guys all covered this very well. I just hope that the union guys (I did 13 years for Teamsters local 317 before being self employed) realize you can not strike a company who is fighting to survive in a down market, in reality you might need to make some concessions until the tide turns, or look for another job elsewhere or another career (its not that hard, I did it). How can you not realize this? My guess is you were brainwashed by the Teamsters because I have heard (and always laughed) at their rhetoric. I think that there may be room for unions, hell maybe even needed in some places, but it's these sort of actions that cost you all credibility.
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jgp 6:04PM (6/16/2008)
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.
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Derek 6:55PM (6/16/2008)
Good idea. If Explorer owners can sue for lost value due to tread separation, there is definitely a case there.
Eric Liberatore 6:09PM (6/16/2008)
A picture of one of the now out of work union employees can be found here...
http://waynesword.palomar.edu/images/taworm4b.jpg
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Eric Liberatore 6:17PM (6/16/2008)
And here's one of his coworkers...
http://www.catnmore.com/images/I_pacificus1.jpg