Teamsters issue wake-up calls

No sooner is Hoffa elected to the union's top leadership post than the job actions start

By Staff -- Logistics Management, 1/1/1999

The International Brotherhood of Teamsters may have come into 1998 like a lamb, but it went out like a lion.

In January, unionized less-than-truckload carriers and the union completed negotiations for a new five-year National Master Freight

Agreement. Immediately after the agreement was signed, both sides spoke of developing more productive ties between labor and carrier management.

In December, the Teamsters elected a new president, James P. Hoffa, who vowed to build a "new militant union, one that is out there to protect our members and negotiate better contracts." Within days of the election, United Parcel Service, Overnite Transportation Co., and ANR Advance Transportation Co. all faced union labor actions.

Shippers that were encouraged by the Teamsters' cooperative tone early last year are concerned about the union's change in focus. "We should applaud the Teamsters for their role in reaching an early settlement on a Master Freight Agreement in January," says John S. DuBiel Jr., chairman of provider relations for NASSTRAC, the National Small Shipments Traffic Conference. "But now I see the organization becoming much more assertive under Hoffa's leadership."

At ANR Advance, 1,400 Teamsters went on strike Dec. 8 after the company presented unionized workers with its final contract offer. Sources at the Midwest regional LTL carrier believe union members would have ratified the contract and averted the strike if the Teamsters had waited for a vote to be held. They also say that ANR Advance's Teamsters workers never actually rejected the contract, even though they authorized the strike.

The Teamsters say the union struck in response to the company's unilaterally imposing its final offer even though negotiations had not reached an impasse. The ANR Advance offer is "unacceptable," says Richard Nelson, co-chair of the Teamsters' negotiating committee. Objectionable provisions in ANR's offer include reductions in benefits, elimination of work rules, and a five-year wage freeze, Nelson reports.

Teamsters picketed the company's 41 terminals across a 13-state network. During the second week of the strike, ANR Advance issued notices that the company expected a mass layoff affecting both terminals and its general office on or after Feb. 13.

Coastal Corp., a 50-percent owner of ANR Advance, announced on the first day of the strike that it would evaluate whether or not it would continue its investment in the trucking company. Coastal assured shareholders that even if it should sell its share in the carrier, it would not expect that to affect its fourth-quarter operating earnings or financial position adversely.

The day after the ANR strike began, Teamsters from Local 705 struck UPS's Chicago-area consolidation hub for eight hours. The union said it struck because UPS consistently refused to honor grievance settlements. Shippers and UPS sources termed the strike's effects on the carrier's operations negligible.

Next Stop: Overnite

The Teamsters also sent customers of Overnite Transportation, a non-union LTL carrier, letters accusing the hauler of unfair labor practices and warning of a possible strike. Teamsters representative David O. Cameron says the mailing is part of the union's continuing campaign to unionize the carrier.

"Our members want to see action," says Cameron. "In our letter, we offered Overnite customers the opportunity to sign up for a 'fast fax' service, which would let them know of the latest developments between the Teamsters and Overnite."

Some shippers may not wait for those developments. Like many companies, Allegheny Teledyne Inc. uses a number of carriers whose services and traffic lanes overlap. "We built redundancy into our transportation program, so we can adopt contingency plans in case of emergencies," says Thomas R. Bakin, travel/logistics manager at the Pittsburgh-based company. Speaking about the Overnite action, Bakin says, "It concerns us, [as would] any action that threatens to pull capacity out of the system."

Bakin is not alone in his concern. DuBiel, who in addition to his NASSTRAC role is vice president of global transportation for Revlon Consumer Products Corp., says that an aggressive Teamsters organization may find a number of healthy prospects for its expansion plans. "The large regional and multi-regional LTL carriers have posted terrific operating results and they have expansion plans, so they make natural targets for the Teamsters' organizational efforts," he says. "RPS and several of the truckload carriers are doing well also."

These carriers can best battle union organizing efforts by providing employees with a friendly and safe work environment, job security, and education, says DuBiel. "[Carrier] employees need to be educated in customer service," he adds. "They need to understand that flexibility is a key component in the carrier-selection process. And that's why non-union carriers are doing so well: They are more flexible."