Friday, August 28, 2009

TEAMSTERS' DESTRUCTION OF THE UNIONIZED TRUCKING INDUSTRY NEARS COMPLETION

The Central Penn Business Journal is tracking the last major trucking company that is unionized by the Teamsters:

"We think there is a high probability the company runs out of cash between now and first quarter 2010," David Ross of St. Louis-based investment firm Stifel Nicolaus told the Business Journal in an e-mail. "We see no significant rebound in freight volumes ahead, and the competitive landscape in (trucking) remains fierce. YRC has been bleeding a significant amount of cash this year, and even with the recent Teamsters concessions, they should continue to do so."

YRC might think twice about going back to the union for additional concessions, he said.

"Given the thin margin of the last vote -- and some members clearly voting the concessions down, like New Penn - we don't think any further concessions would be ratified by the rank and file," Ross said.

Local Teamsters leaders are being diplomatic. They know the impact on their members if something can't be worked out, Carlos N. Ramos II, president of Harrisburg-based Teamsters Local 776. That's why they're still confident the company can make it, he said.

"It can be saved with a couple of things falling in place," Ramos said.

That includes all union members voting for the concessions package, the economy turning around, the banks helping to shore up YRC credit and the company retaining its customers, he said. It's not an easy list for YRC to check off, he said. Especially since New Penn workers voted down the concessions.

To read the entire article, go here.


To review a partial list of Teamster-represented companies that are now out of business, go here.

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