Automakers

Teamsters: We Got Shaft on Car Haul

Stock quotes in this article:F, TM 

"Cars are very fragile when they are in transit," and replacement car haulers often lack the expertise to haul them, Zuckerman says. "These folks don't have the proper training and equipment to haul cars. They use the wrong hooks and put them in the wrong places," causing damage and delays.

Incidents of damage are detailed at a Teamster Web site, www.carbuyersbeware.com. Additionally, the union has produced a report that cites safety problems at non-union car-haul companies: It will be released to Congress on Tuesday. Union members also have leafleted 400 dealerships in 40 states.

Chrysler spokeswoman Shawn Morgan says the automaker has shifted about 28% of its carhaul business. Chrysler has been spending $111 million annually to haul cars, but says that cost will eventually diminish by $31 million annually as a result of its vendor shift on select routes.

About 75% of the business will remain with Teamster-staffed companies, Atlanta-based Allied Systems Holdings and Illinois-based Cassens Transport Co., even though "Chrysler has been working for over a year with (the pair) to get them more competitive, but in that time they have not made the effort necessary to become more competitive," Morgan said.

Meanwhile, General Motors is negotiating with both union and non-union car haul companies and "has no plans to phase out unionized hauling companies," said spokesman Alan Adler. "We are currently in contract negotiations with several haul-away companies, both union and non-union, due to contract expirations," he said.

"Our focus is to help solidify the most profitable business arrangements with our current providers and then to conduct a competitive bid process for the remaining business requirements," Adler noted. "We are committed to working collaboratively with our supply base to achieve mutually beneficial results."

The Ford(F) and Toyota(TM)contracts with the union car-haul companies expire June 1. "Ford is not a problem yet," Cassens says, but the union worries that it could follow the lead of its competitors.

-- Written by Ted Reed in Charlotte, N.C. .

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