Wall RSS FeedNews and HeadLines Of Carhaul 6/13
Car hauler drops motion to stop Teamsters strike
Andrew Grossman
Automotive News
June 13, 2008 - 3:32 pm ET
Performance Transportation Services Inc. today dropped its motion for an injunction to stop the Teamsters strike against the car hauler.
A spokeswoman for Performance Transportation Services said the move was related to negotiations with the Teamsters but declined to elaborate. A hearing on the motion had been scheduled for 2 p.m. today in U.S. Bankruptcy Court in Buffalo, N.Y.
Performance Transportation Services’ major creditors have asked a judge to convert the case to a Chapter 7 liquidation from a Chapter 11 reorganization.
A hearing on the motion is scheduled for Tuesday, June 17. At the creditors’ request, the judge in the case moved the hearing forward by almost a month. In court filings, the creditors said the strike has effectively dashed any hopes that Performance Transportation Services might have had of remaining viable.
More news………….
Teamsters ‘Very Close’ to Reaching Tentative Carhaul Agreement
Union Also Continues Dialogue With PTS to End Strike
June 13, 2008
Teamster carhaul negotiators will meet next 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.”
Meanwhile, talks with bankrupt PTS, which pulled out of multiemployer talks, continued last night and this morning in an effort to end the union’s strike at the company, which began June 9.
“We have left the door open to continue dialogue with PTS,” Zuckerman said. “In the meantime, the strike continues and the vast majority of our PTS members have gone to work for other Teamster-represented companies. We have scheduled an Article 5 Committee meeting next Tuesday in Detroit to address the seniority transfers of all affected PTS employees. Protecting the interests of our PTS members—and all our Teamster carhaul members—remains the top priority.”
June 13th, 2008 at 6:59 pm
Quote from Jeff Cornish correspondence dated June 13, 2008:
“We are ceasing all operations and commencing to close PTS and its related companies effective today June 13, 2008″ For more see the PTS website. All correspondence has been publically posted on the web site.
June 13th, 2008 at 7:59 pm
Thanks for the heads up
Now what
What happens now?
June 13th, 2008 at 8:27 pm
I have to believe that the man is insane. This is the first we’ve heard anything about “New Equipment”.
June 13th, 2008 at 8:51 pm
Teamsters in talks with vehicle hauler to settle strike
Andrew Grossman
Automotive News
June 12, 2008 - 4:35 pm ET
Teamsters officials met with Performance Transportation Services Inc. management this morning in Cleveland and exchanged proposals to end a four-day strike against the company. But with each day that it doesn’t haul cars, the bankrupt company moves a step closer to liquidation.
A federal judge agreed today to a June 17 hearing on whether to convert the vehicle hauler’s bankruptcy case from Chapter 11 restructuring to Chapter 7 liquidation. Two more creditors filed motions Wednesday, June 11, to convert the case. Two lenders asked a judge May 30 to allow the company to be liquidated. That hearing had been set for June 20. Another judge is to hear arguments Friday, June 13, on a motion that would force the Teamsters to end the strike.
Performance Transportation, of suburban Detroit, lost $11.2 million in the four months that ended April 30, according to court filings.
One of the creditors that moved to have the hauler liquidated, Black Diamond Commercial Finance LLC, had been providing most of the working capital through a $17.5 million credit line. But it terminated that credit and declared the hauler in default Wednesday. A clause in Black Diamond’s credit agreement says it can declare a default if a strike or work stoppage continues for more that 24 hours.
Performance Transportation’s CEO has posted letters to the Teamsters online daily, pleading with union members to return to work. The heading on one posted Wednesday was bold, underlined and in capital letters: “LAST DITCH EFFORT — YOU CAN MAKE THE DIFFERENCE!!!”
The hauler’s 1,250 Teamsters drivers went on strike Monday, June 9, after a judge allowed the company to impose a 15 percent wage cut on them. Performance Transportation is the country’s second-largest car hauling company. It transports vehicles for most of the major automakers doing business in the United States. The hauling business is struggling as fuel prices rise and automakers ship fewer vehicles. Performance Transportation is in bankruptcy proceedings for the second time since 2006. Its current filing for bankruptcy protection came in November 2007.
No major supply disruptions have been reported as a result of the strike.
June 13th, 2008 at 10:17 pm
[...] News and HeadLines Of Carhaul 6/13 [...]
June 13th, 2008 at 10:32 pm
Why didnt he purpose that 2 months ago.Hes full of shit , if it was so important to save the company he would of done that months ago.I worked at E&L for 12 yrs I had some good times with that crew of misfits.
June 13th, 2008 at 11:21 pm
According to our BA who was in Cleveland, PTS was asking for an additional 15% to cover the costs of what they lost during the strike. We would have been working at a 30% pay cut. The union accountant additionally stated that at the original 15% the company would have run out of money before the end of July. Cornish was living in la la land. We took an axe to a tree that was rotting from within. It sucks to be out of a job but it felt good to bring these corrupt idiots down. Kinda like a reverse Enron if you ask me.
June 14th, 2008 at 8:33 am
You Teamsters are idiots. You just closed down a union shop and gave non-union car haulers PTS’s freight on a silver platter. Non-union haulers got the work at our terminal, thanks to your efforts. Hundreds of union drivers are now unemployed (not “back to work at other union companies” as that coniving liar Zuckerman states). Hundreds more hard-working clerical and middle management people with families are also out of work in a 5.5% unemployment environment, the worst in 20 years. Instead of a 15% pay reduction, union drivers will now be on the unemployment line or finding what work they can at a hell of a lot more than a 15% cut in pay. The Teamsters fell in line with Zuckerman & Hoffa’s scemes and got stabbed in the back for their efforts. What has the union accomplished here? Union drivers unemployed. One less union employer. Extra work for non-union haulers and reason for them to expand their operations. Great job, Teamsters! Keep this kind of misguided effort up and maybe we’ll be rid of unions once and for all !!
June 14th, 2008 at 4:38 pm
WOW dicruntled midlle management person I am guessing that there is no Art 5 in your contract or are you just scared that your incredible middle management skills are not in that mush demand at this time
June 14th, 2008 at 7:25 pm
Gee TF I don’t know where you got your information. At Toyota Port Newark, Active Transport got some MORE of our work, Allied got some, and Cassens moved in and got the rest. At Toyota Georgetown, Cassens took our work and Jack Cooper was already there. At Toyota Princeton, Jack Cooper took our work and Cassens was already there. In Lordstown Cassens moved into the plant to take our work and were already at the rail head in Warren anyway. Most Leaseway Lordstown drivers were taken on by Cassens. Sure United road moved into Doremus Ave at PN but PTS was losing it’s ass there anyway. The same as Selkirk. So, Yeah they got some great short run rail freight. But the long haul stuff that PTS used to carry stayed union.
June 15th, 2008 at 9:44 am
I’m sure that will all be good news to the 50+ drivers from our terminal that will be lining up at the Unemployment office Monday morning. Perhaps the Toyota work remains union, but that was less than half of our product. The majority of freight from our terminal is now being delivered by a non-union company. And Gonzo, I’m so disgusted with the entire car hauling industry at this point I’d rather work at Burger King than another trucking company. Given the current condition of the economy I’d probably have to compete with several of our newly-unemployed union drivers for the job. In my entire working history I have never seen an industry with it’s head so squarely up it’s butt.
June 15th, 2008 at 2:04 pm
TF all I have to say is that if not last week then in the very near future it was all gonna come to a screeching halt. All we did was hasten the inevitable end. Mr. Cornish was responsible for this whole mess if you still think you need to remain loyal to him, well….
Were you around during the days of Rick Roger? Remember all that stuff like ’spin’n'win’, the suggestion line, t-shirts in the mail? At the time it seemed real hokey, but looking back it encouraged a real sense of working together. Mr. Roger asked us to pull 2 extra loads a month if we could to help out. But alas, the day came when Rick resigned using that old chestnut of an excuse, “I have to spend more time with my family.” He went to Pilot Oil. The reign of Jeff Cornish began and it was all down hill from there. I watched the whole thing from beginning to end.
Did you know that during the original bankruptcy they tried to get a 15% paycut from the courts while Mr. Cornish and his ilk wanted a modified bonus plan for themselves. To get this bonus they didn’t need to improve the company in any way. Go to Bankruptcy.com it’s all there. The only reason it didn’t occur was because The Teamsters and Creditors fought it. Gimme a break!