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September 24, 2008

Teamsters Strike Oak Harbor Freight ; Who's Next?

Analysis of: Oak Harbor Freight on Strike | tdu.org
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
John Schulz, Independent Analyst - Contributing EditorJohn Schulz
Independent Analyst - Contributing Editor, Logistics Management Magazine
Implications: About 600 Teamsters are on strike against Oak Harbor Freight, a major LTL carrier in the Pacific Northwest. Drivers, dock workers and back-office union members have been without a contract for 11 months. The increasingly militant clout of the Teamsters union is expected to increase in the coming months, especially if Democrats win the White House and expand their majorities on Congress.

Analysis:   The latest trucking company to be struck by the Teamsters union is Oak Harbor Freight, a large Pacific Northwest LTL carrier that had been operating for 11 months without a contract.
  It will not be the last trucking company to go on strike.
  Under James P. Hoffa, son of the legendary Teamsters union boss, the union up until now had been fairly tame compared with his strike-happy predecessor, Ron Carey. Under Carey, the Teamsters engineered a devastating 24-day strike against freight companies in 1995 and another 15-day strike against UPS in 1998. It took years for both sectors to recover from Carey's recklessness.
  The younger Hoffa has been more judicious. Besides realizing that the union's growth prospects are with UPS -- not the freight companies, which are barely 10 percent unionized these days -- Hoffa has shown a willingness to work with companies.
  But with the dissident Teamsters for a Democratic Union (TDU) called Hoffa's tactics "concessionary," that may be about to change.
  There are new indications of union organizing activity in trucking. Already, UPS Freight (the former Overnite unit) has been virtually completely unionized. Also, quietly, the truckload arm (Glen Moore) of YRC Worldwide has signed a union contract with the Teamsters.
  With the likelihood of a new Congress passing a "card-check" law, that will make it even easier to organize non-union trucking companies such as FedEx Freight and others.
  Should non-union carriers be worried? Certainly. Are they doing much about it? Some are, but most aren't. Because most of these companies have been non-union throughout their history, there is a feeling that "it can't happen here."
  That mentality could be costly going forward. The Teamsters are spending a ton on the upcoming presidential election to help get Sen. Barack Obama elected. They are equally active on behalf of Democratic candidates in the House and Senate.
  Should the Democrats "run the table" this fall and sweep the White House and expand their majorities in the House and Senate, look for Big Labor to be on the rebound. If nothing else, it will be looking for some reward to help get these Democrats elected.
  Card-check registration may only be the beginning. There are signs of increased regulations coming out of Washington in a number of industries, trucking among them. Carriers may have to deal with a more militant union movement as well.
  On top of soft freight demand, increased discounting, tougher credit availability and some overcapacity in the market, trucking companies should include labor organizing among their chief threats in the upcoming decade.


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