Court Approves Wage Cut at PTS

June 6, 2008: A U.S. bankruptcy court judge approved PTS’s request for a 15 percent wage cut. Will a strike by Teamster carhaulers be next?

A bankruptcy judge approved a company request to slash by 15 percent the wages of 1,300 Teamster carhaulers at Performance Transportation Services. The wage cut takes effect today and is authorized through July 31, 2008.

The decision by the judge comes after PTS announced they would pull out of the joint employer bargaining and bargain with the union on their own—just two days before the contract expired on May 31.

Our International Union filed a motion in court to block the company’s manipulation of bankruptcy proceeds to get around the bargaining process. But the union’s motion was denied.

Now, the front line in this battle moves from the bankruptcy court to the bargaining table—and possibly the picket lines.

Teamsters at PTS are being told to be ready to strike at 9 AM on Monday morning. Members voted to authorize a strike by more than 3 to 1 last weekend.

United Teamster action is needed to defeat concessions at PTS and defend the integrity of the carhaul contract. Concessions given now will be hard—if not impossible—to win back later.

Click here to read the Order of the Court granting PTS’s request for a 15 percent wage cut and click here to read the union’s motion to the court.

What do you think our union should do to defend our contract? Click here to send your comments and suggestions to the TDU Carhaul Committee.

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