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.