July 3rd, 2008
We can talk all day about whether the Allied Auto Transport drivers did right to accept a pay cut to attempt to save their jobs. There has been a lot of discussion along the same lines about the union rejecting Performance Auto Transports attempt to force a similar pay cut through the bankruptcy court. The facts are that Allied is still hauling cars and paying their drivers the lower wage and PTS is closed.
Is my sense of fair messed up when I think it is UNFAIR for a driver with seniority that lost his job because he voted to strike rather than accept a pay cut to take a position at Allied, that results in either less work or possibly no work at all for a guy that has been driving for a year at Allied under the wage concessions!
This post on The car hauler is what set me thinking about this:
June 14th, 2008
We called it on the 11th but now ,Jeff Cornish, the CEO of Performance transportation Services has made it official on the company website. I think the teamsters are fortunate that Jeff threw in the towel and folded when he did. If he would have let the strike extend several weeks then the shippers would have been forced to find non-union carriers to move the cars. Here is a copy of the letter: 
Here is the Teamsters rebuttal
Lenders Pull Plug on Company
June 10, 2008
PTS announced today that it was shutting down, effective today, and Teamster carhaul negotiators are setting the record straight about the company’s demise.
“In its announcement, PTS suggested that our failure to accept its most recent proposal led to the closure, but nothing could be further from the truth,” said Fred Zuckerman, Teamsters Carhaul Director. “We learned this afternoon that PTS permanently closed its doors after its primary lenders, Black Diamond Capital Management, cut off access to its credit facility earlier this week. The union has been on strike against PTS since Monday, June 9, 2008, in support of our bargaining demands and in protest of the company’s unfair labor practices. PTS’s top officials met with us all day yesterday to try to end the strike and to convince us to accept drastic wage concessions for our members. The company did not provide us with information that was anywhere near adequate to support its demands. The company did not present us with a viable plan to get out from underneath its debt. Instead, the company wanted to force our members to bear the lion’s share of the cuts and to shoulder a grossly disproportionate share of the ongoing risks relating to the company’s problems with its lendors. We countered with a detailed proposal to the company, which included significant operating improvements for PTS and which in our opinion would have enabled to company to survive. The company rejected our proposal and insisted only on cutting our members’ wages. At the same time, though, the company’s top management would not take the same cuts for themselves. Their last-second gesture to take just a modest cut in relation to the cuts they wanted our members to take was an empty one at best. Based on the company’s actions today and reports of lock downs at the facilities, it appears the company has chosen to shut its doors rather than continue talks with the union.”
There is two sides to every disagreement. I think this one is no exception and both sides have valid points. I think Zuckerman loses some credibility when he says “it appears the company has chosen to shut its doors rather than continue talks with the union.” I don’t believe that PTS has any choice. They have run out of time. Creditors are pushing for chapter 7 so they can begin recovering assets.
June 11th, 2008
The question is why? Well as I see it if they gave them concessions on wage to help them stay viable(profitable) they fear that others(including automakers would make the same moves next. They appear to be willing to sacrifice a company with 2000 union jobs to keep from setting a precedent. Their risk is that so many jobs may be replaced by non-union carriers that this could be the beginning of the end for the unions. If they can’t get a significant percentage of the workers employed soon then how do you think the next strike vote will go! I don’t think they should have played hard-ball in this economy. It probably would have worked 3 years ago.
Here is a Teamsters opinion
Copied here from a comment on thecarhauler he is responding to a comment from ford focus buyer that blamed the union for loss of the PTS jobs.
June 7th, 2008
I think a strike of any length could be a death sentence for Performance Transportation Services. Nobody wants to break strike lines because we want to see drivers get paid fairly but in this case the strike will more likely result in PTS folding. I think it would be better for the industry if PTS was replaced by several mid-sized companies instead of having one giant. Then if one company does not treat drivers fairly they see the drivers get hired away by the competition. No strike needed!
GM spokeswoman Deborah Silverman said the automaker “would take steps to ensure that the supply chain is not disrupted” in the event of a strike. Ford is hopeful there will be no strike, but spokesman Todd Nissen said “we’re working on contingency plans to keep our vehicles moving away from the plants” if there is a walkout.
Toyota spokesman Xavier Dominicis said the company also was monitoring the dispute and preparing a plan for moving vehicles if there is a strike.
Here is a copy of a portion of a letter written by CEO Jeff Cornish to PTS employees
Here is a quote from an information flier on the teamsters web-site:
“We have no confidence in this company’s ability to operate under any
circumstances going forward, even with one-sided wage concessions and a small
bridge loan from a hedge fund in place. Even with the concessions, the company
has virtually no chance for survival.”
June 21st, 2008 at 10:17 pm – EditIf PTS workers came to work and the doors were locked I wouldnt have any arguement for their seniority rights, but this is not the case.. Allied drivers understood what would have happened if they didnt except the pay reductions, they did and their still working..PTS drivers rolled the dice and lost…now me and 40 other drivers some of who transferred cause our work was given up by the our company now face losing our jobs cause PTS drivers struck their company out of business…PTS drivers opened a can of worms…Ur former owner is still in,changing ur PTS logo to Allied as we speak, Uniited road is hauling PTS freight ,some of ur drivers who are being absorbed are looking at pay cuts. So who benefits from the strike and closure..the most senior men..and the question is asked why united road and others are taking our freight? maybe because the junior guys the future of the teamsters are dissatisfied and fed up with constantly being stepped on. But realize this, PTS went out of business while u guys struck..at that point You had no work 2 claim your own, you gave up that right ,just as u gave up the right 2 claim severence, vacation, and unemployement . The union has scrabled to force u guys down our throat but were not going 2 stand by and get stepped on cause u guys lost.. In my barn my shop steward went out on comp the day before u guys struck, that was the first sign., he wont return any active drivers call, and he has said he will not take any greveinces….see a pattern here? The teamsters is a democracy not a autonomy….Cassens and Allied have sent u 2 the bottom of their list……why isnt Active doing the same?