Hoffa Enters Carhaul Negotiations

Teamsters President James P. Hoffa personally entered contract negotiations with carhaulers, saying he will fight management proposals for lower starting wages and expanded use of part-time labor.

"It hasn't worked in freight and it has been abused at UPS. These are two important issues. Unless we can talk some sense into management, we are going to have to shut them down."

Hoffa said he will also push for greater job protections, increased wages and benefits and a prohibition on using Mexican drivers to transport cars into the U.S.

The new Teamsters president spoke with reporters shortly before meeting with management representatives at a Arlington, Va., hotel for what is expected to be nonstop talks aimed at reaching a settlement before expiration of the National Master Automobile Transport Agreement at midnight on May 31.

The Teamsters represent approximately 12,000 drivers and mechanics who deliver cars and trucks from factories and rail terminals to dealerships.

Hoffa refused to say whether the union would extend the deadline if an agreement is not reached by the deadline.

"We've made some progress, but the big issues are still out there," he said.

On Friday, the National Automobile Transporters Labor Division, the bargaining agent for 17 unionized carhaulers, released a report that attributes high labor costs to a decline in market share by unionized carhaulers.

According to a study by Alan J. Stenger and Peter Swan of Penn State University, carhaul rates paid by U.S. auto manufacturers fell by 0.23% between 1994 and 1998, while wages and benefits paid to union carhaul employees increased by 33%.

"Unionized carriers can no longer pass along increased labor costs to their customers," said R. Ian Hunter, executive director of the NATLD. "Our companies are willing to pay our employees higher wages and benefits. But in order for that to happen in the current environment, we need more operating flexibilities."

Teamsters carhaulers earn an average of $68,000 a year in pay and benefits, making them among the highest paid drivers in the industry, NATLD said.

Since 1994, the number of unionized carhaul employees has declined 14%, while the number of plants served by nonunion carhaulers has grown from 23 to 81 in just the past three years.

Railroads also have grabbed a larger share of the carhaul market, transporting an estimated 71% of new vehicles from plant sites.

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