Academic journal article Monthly Labor Review

Auto Transporters End 19-Day Strike

Academic journal article Monthly Labor Review

Auto Transporters End 19-Day Strike

Article excerpt

A 19-day strike that had begun to cut automobile sales ended when the Teamsters union settled with the National Automobile Transporters Association, comprising 36 companies that deliver new cars to dealers. In the wake of the stoppage, the major domestic auto manufacturers offered inducements to the public to reduce their larger-than-usual inventory of vehicles at the end of the model year.

The 3-year contract provides for a limited two-tier pay system for terminal employees under which new employees will be paid 80 percent of the standard rate for their job during their first year, 90 percent during the second year, and the full rate thereafter. Under an earlier proposal the workers had rejected, the two-tier system would also have applied to drivers.

Another provision give employees the right to vote on whether their particular employers should be permitted to cut rates by 50 percent on "black-hauls"--instances in which drivers deliver a load of vehicles to a destination and are able to obtain a load of vehicles for the return. Under the prior contract, some employers had been able to obtain permission for reduced back-haul rates based on their financial condition. …

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