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Major Carhauler Shuts Doors as Teamsters Continue Master Carhaul Negotiations

June 13, 2008

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The Teamsters Union says it is "very close" to reaching a tentative carhaul agreement this week. Meanwhile, the country's second largest auto hauler has closed its doors.


Teamster carhaul negotiators are meeting this week in Detroit for multiemployer negotiations in hopes of reaching a tentative National Master Automobile Transporters Agreement.

"We only have a few economic proposals left and we are very close to finishing," said Fred Zuckerman, Director of the Teamsters Carhaul Division and lead negotiator. "We will reach a tentative agreement that protects our members' job security and their wages and benefits."

Friday, Performance Transportation Services announced it was ceasing all operations, according to a letter posted on its web site.

"This action has been necessitated by events over the last nine days," wrote Jeff Cornish, president and CEO of the Allen Park, Mich.-based company, whose more than 1,200 Teamster workers are employed by PTS companies Leaseway Motorcar Transport, E&L Transport, Hadley Auto Transport and Transportation Releasing.

In late May, the company pulled out of the multi-employer car hauler association and multi-employer bargaining, an action criticized by the Teamsters.

On June 4, PTS received approval from the court overseeing its bankruptcy case to cut wages of its Teamster-represented employees by 15 percent for a two-month period. "During that time," Cornish wrote, "it was contemplated that the Teamsters and the company would negotiate a new, long-term contract that would enable the company to exit Chapter 11 as a solid, viable ongoing business."

The union, however, went on strike June 9. "Over the past week the strike had a devastating effect on our business, as customers diverted traffic to our union and non-union competitors." Negotiations on Thursday broke down.

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