Trucking company takes on Teamsters

CNY Business Journal (1996+), Jan 14, 2005 by Dickinson, Casey J

SYRACUSE - Trucking giant USF Corp. (NASDAQ: USFC) is striking back at the Teamsters union in federal court. The Chicago-based transportation company has filed suit against the Teamsters and three local union chapters, charging that the union's May 21, 2004, work stoppage against its Red Star trucking subsidiary violated the National Labor Relations Act and cost USF millions of dollars in damages.

USF shut down its Red Star trucking unit two days after the work stoppage. The company subsequently re-entered the Northeastern market in September with its USF Holland unit. USF operates five regional trucking lines and more than 225 terminals.

Teamster efforts to organize the largely non-union USF Dugan trucking line prompted the May 2004 walkout, USF charges in its complaint.

USF's lawsuit, filed in the Northern District of New York in Syracuse, says the Teamsters' actions violated federal labor law and breached the no-strike clause of its collectivebargaining agreement. The complaint, which names Teamsters' locals 317, 294, 687, and the International Brotherhood of Teamsters, asks for "millions of dollars" in damages as well as its legal fees.

USF does not comment on pending litigation, says James J. Hyland, vice president for corporate communications at USF Corp.

While both USF subsidiaries are unionized, different work rules at each trucking line offered an incentive for USF to replace Red Star with Holland in order to take advantage of Holland's less-restrictive work rules, explains James A. McCall, special counsel for the International Brotherhood of Teamsters.

"The advantage is that USF Holland has Substantially lessrestrictive work rules," says McCall, "USF had tried for years to get similar rules for USF Red Star."

For example, USF Holland's work rules allow drivers to perform dock work, such as unloading the trucks. Red Star's rules do not allow that, he explains.

The Teamsters went to court first

The Teamsters filed its own lawsuit against USF in the Eastern District of Pennsylvania last year, charging the trucking firm had used the strike as a pretext for a planned shutdown of Red Star. The complaint charges USF failed to give the 60-day notice required by federal law before a shutdown. Individual workers have also filed suit against USF. The lawsuits seek class-action status for workers against USE

"Defendants attempted to evade their obligations under the WARN Act," the Teamsters Pennsylvania complaint against USF says, "by locking out the USF Red Star employees."

The Teamsters union is seeking back pay and benefits for Red Star employees, the reopening of Red Star, reemployment of its workers, and attorneys' fees and other relief

The shutdown of the Red Star truck line put 2,000 people out of work, according to court documents. At the time of the shutdown, Richard DiStasio, USF's chief executive officer blamed the International Brotherhood of Teamsters for forcing the company to close the Red Star line. Red Star had 26 facilities in 13 states and in the District of Columbia,

"We have lost customers and revenues," DiStasio said in a statement on the day of the closure, "we know many of those customers are gone forever."

USF complaint is two-fold

USF's complaint against the union alleges two counts: One under section 303 of the Labor Management Relations Act for "secondary boycott activities," and a second for breach of contract relating to strike-notification provisions in the Red Star labor agreement.

"The unions and employers agree that there shall be no strike, lockout, tie-up, or legal proceedings without first using all possible means of settlement, as provided for in this agreement, of any controversy which might anise," reads the labor agreement quoted in the complaint.

Exhibits in the USF complaint include union leaflets detailing the Teamsters efforts to unionize USF Dugan, including one featuring an alleged USF-distributed, anti-union button stating "Disrespect Da Brotherhood of Team-Stirs,

The law firm of Bond, Schoeneck, & King, PLLC is serving as local counsel for the Chicago-based Matkov, Salzman, Madodd & Gunn law firm which represents USE BS&K attorneys Paul Sansoucy. Jonathan Fellows. and Thomas Eron signed the USF complaint against the Teamsters.

USF Holland's Syracuse terminal is located at the site of the former Red Star terminal at 6618 Boss Road in Mattydale. It employs 14 and serves as the base for 26 trucks. The 18,850square-foot truck terminal has 36 loading docks and is set on a 3.5-acre lot.

USF employs more than 20,000 and generates annual revenues of $2.9 billion.

USF traces its roots to Australia's TNT Ltd., a trucking company, founded in 1946, that entered the United States market in the 1960s. Under its North American identity, TNT Freightways, the company entered the Canadian market in the 1970s and purchased several regional lines during the 1980s. TNT purchased Red Star in 1987. Parent company TNT Ltd. made TNT Freightways an independent company in 1992. TNT Freightways changed its name to US Freightways in 1996, and subsequently to USF Corp. in 2003.