Crescent Truck Lines, a unionized carrier in Hayward, Calif., is suspending its LTL operation effective immediately.
Frank J. Warn, who founded the company 44 years ago, has decided to take the company in a different direction, concentrating on its dedicated service and growing logistics divisions.
Warn presented several issues as reasons for the changes, including escalating insurance costs such as workers compensation, which he said has quadrupled in the past four years. He said his fleet insurance carrier warned him to expect a substantial increase.
Other issues, he said, include the poor economy, the aggressive pricing by non-union competition driving rates down, and hikes in many operating expenses, such as fuel.
"Being a union carrier has made it very difficult when one considers that health and welfare and pension payments exceed $1,000 per month per union employee whereas non union carriers pay substantially less," Warn said. In addition, he said another $70 per person per month average was added to the health and welfare beginning this year.
Warn said the Teamsters have been very cooperative and helpful over the last several years, "but even with their understanding and help, the playing field is not level when compared to non-union companies in the area of work rules and the ability to call out sub-standard employees."
He said Crescent has many loyal, dedicated employees and "all possible will be done to help them find employment."
Frank J. Warn, who founded the company 44 years ago, has decided to take the company in a different direction, concentrating on its dedicated service and growing logistics divisions.
Warn presented several issues as reasons for the changes, including escalating insurance costs such as workers compensation, which he said has quadrupled in the past four years. He said his fleet insurance carrier warned him to expect a substantial increase.
Other issues, he said, include the poor economy, the aggressive pricing by non-union competition driving rates down, and hikes in many operating expenses, such as fuel.
"Being a union carrier has made it very difficult when one considers that health and welfare and pension payments exceed $1,000 per month per union employee whereas non union carriers pay substantially less," Warn said. In addition, he said another $70 per person per month average was added to the health and welfare beginning this year.
Warn said the Teamsters have been very cooperative and helpful over the last several years, "but even with their understanding and help, the playing field is not level when compared to non-union companies in the area of work rules and the ability to call out sub-standard employees."
He said Crescent has many loyal, dedicated employees and "all possible will be done to help them find employment."
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