Recent deals designed to allow carhaul employers to attract business are in clear violation of the national contract and raise questions about which direction the division is heading. So far, carhaulers are not getting any answers.
Minnesota Local 120 recently signed deals with E&L Transport and Allied Automotive Group that call for a mileage pay rate of 85 percent of the contract rate. The E&L deal has a gradual catch-up provision but the Allied deal does not. There is no provision in the national contract that would allow this kind of cut-rate deal by any local union.
Local Officer Condemns the Deal
John Thyer, secretary-treasurer of St. Louis Local 604, sent a letter to James Hoffa on July 14, writing, “I was told that the Local had worked out agreements with both employers. I am here to tell you that the Local has no right to bastardize the NMATA and as the national chairperson it is your responsibility to correct this atrocity.”
He notes that no vote was taken, and that Hoffa should take action to stop individual locals from “freelancing agreements that will ultimately destroy the wages, benefits and working conditions of the carhaul industry.”
The IBT bragged about the deals on the Teamster website, noting that some 20 jobs at Allied were gained from work that was previously hauled nonunion. Article 22 of the contract does allow for certain contract adjustments to gain new work, but spells out exactly the pay rate, and this deal is in clear violation of that rate.
Article 22 does not allow local unions to just invent new deals below the contract.
A one-way haul at the 85 percent rate means an overall rate of about 43.9 cents per mile with reduced loading and unloading pay as well.
Dangerous Past Practice
E&L was given a similar deal at 85 percent of scale in Selkirk, N.Y., in late 2003. This was in violation of the contract, but the International did not stop it, so Local 120 officials claim it as justification for their recent deal in Minnesota. If one local makes a substandard agreement, does that mean others can do the same? This is exactly the danger.
Carhaulers and local leaders are concerned that side deals by local unions that undercut the wage rates in the national contract could spread, damaging our union and destroying our contract.
The danger is already spreading. It now appears that Cassens has requested the same deal for traffic coming out of the Warren (Lordstown), Ohio, railhead.
Where are James Hoffa and Carhaul Director Fred Zuckerman on this matter? Have these agreement been approved, as is required by the contract?
Brian Adams, Cassens steward from Nashville Local 327, told us, “The International is sinking to a new low. Instead of organizing, which they apparently don’t know how to do, they just want to lower the contract wage. This has to be exposed and stopped now, or it’s sure to spread.”
Members need to rise up and say no, loud and clear, while there is still time. Petitions to Hoffa are starting up, calling for action now.