PTS Shuts Down Following Strike
Automobile hauler Performance Transportation Services said it has gone out of business, due to a strike against the company last week by the Teamsters union.
PTS and the union traded blame on the company’s demise, with each side claiming the other rejected offers that could have led to a settlement.
The auto hauler ceased operations late Friday, Chief Executive Officer Jeff Cornish said in a statement. PTS is majority owned by California private equity firm Yucaipa Cos.
The company’s proposal included a reduction in wages for both hourly and salaried employees, Cornish said in a statement posted on its Web site.
“The proceeds from these savings would have been invested in new equipment and major refurbishment,” he wrote. “Unfortunately . . . the Teamsters concluded that it was not it their interest to accept our offer.
The Teamsters said in a statement that it countered a PTS offer with a “detailed proposal . . . which included significant operating improvements for PTS and which in our opinion would have enabled to company to survive.
“The company rejected our proposal and insisted only on cutting our members' wages. At the same time, though, the company's top management would not take the same cuts for themselves,” the union said.
PTS is ranked No. 73 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers and the second-largest car-hauler.
