StillenMustang07

Andrew Grossman

Automotive News | June 17, 2008 - 12:01 am EST



DETROIT -- The nation’s second-largest vehicle hauler says it will stop all operations and go out of business.

Decreasing volume and rising fuel prices had driven Performance Transportation Services Inc. into bankruptcy twice in the past 2˝ years. Last week, a Teamsters union strike against the company dealt the final blow.

The move will likely have little effect on deliveries of vehicles to auto dealerships. Automakers put in place contingency plans when Performance Transportation’s 1,250 drivers went on strike last Monday, June 9. No major delivery interruptions were reported. The vehicle-hauling industry has developed excess capacity as North American vehicle production has declined.

The Teamsters said last week that the “vast majority” of its members had found work at other unionized vehicle haulers.

In a letter sent to employees late Friday, June 13, Performance Transportation CEO Jeff Cornish blamed the Teamsters for refusing to accept a temporary 15 percent wage cut that he said was necessary to keep the company afloat.

“Management and many of our Teamster members were willing to make the required sacrifices to save the company,” Cornish said in the letter. “But the leadership of the union had a different agenda.”

The Teamsters disputed Cornish’s remarks, noting that Performance Transportation lenders had asked a federal bankruptcy judge to liquidate the company.

“The company did not present us with a viable plan to get out from underneath its debt,” Fred Zuckerman, director of the Teamsters’ vehicle-hauling division, said in a statement. “Instead, the company wanted to force our members to bear the lion’s share of the cuts and to shoulder a grossly disproportionate share of the ongoing risks relating to the company’s problems with its lenders.”

Cornish said Performance Transportation, of suburban Detroit, had hauled about 2.7 million vehicles each year for most of the major automakers operating in the United States.

There was no immediate word today on which vehicle haulers would take over Performance Transportation contracts. Such decisions will likely be worked out in U.S. Bankruptcy Court in Buffalo, N.Y., which is presiding over the case.

svopaul

There was once a need for Unions in this country but they are going to be the downfall of it in the end. The ONLY people Unions benefit are the Union bosses or those in higher positions. In my experience over the years the Teamsters are the worst group...take advantage of the working guys while telling them they are trying to help them. This is a good example of a Union trying to strong arm a company....hope they are happy now....the company is gone and all those due paying members have to go find another job.

adrenalin

That is a huge problem in our area. All major industries around here are unionized. Someone that recently started where I work (and was from out of town) was surprised to see that we didn't have any major automotive companies since this is a prime location for them. It all comes down to the unions. Nobody can afford to pay what they are asking and when they do get the job, most of the guys just sit on their butts, slow down the work, miss deadlines, etc, and then strike cause they want a raise. I worked for a union once and I hope I never work for one again.

the procrastinator

I used to feel the same way when I lived up north. Living in a state where there is no collective bargaining changed my perspective. I wish there was a happy medium between overreaching unions and public and private entities putting the screws to their employees in the absense of unions.

svopaul

While there are a few unions I really have no problem with, the Teamsters are probably THE most corrupt Union out there. I remember about 8 years ago or so when I had to work different trade shows and while in New York City I noticed that they had on duty State Troopers walking the isles of the Javitz Center....when I asked why it was because they had kicked out the Teamsters and the Police were there for security because of that.

I also saw problems at many other convention centers with the Teamsters....basically if you wanted your stuff moved out, you had to pay them basically a bribe.....you couldn't touch a moving cart so you were held hostage to the Teamsters. Not sure if the Teamsters control the docks but we had to pay a bribe once in Baltimore to get to our shipment...the alternative was to wait who knows how long....in fact the guy said Quote: "I don't know how long it will take....could be days....but if you act right I am sure we could get you out of here within 30 minutes".