News Briefs - Dec. 13
The Latest Headlines:
- DOT Proposes Improving Fuel Economy in Light Trucks
- ArvinMeritor, Volvo Ink Brake Pact
- ILWU Sends Contract to Members
- International to Lay Off 250 at Ohio Plant
- Discrimination Suit Filed Against FedEx
- Venezuelan Strike Continues to Disrupt Oil Shipments
- Investment Co. Buys Stake in Raba
- ArvinMeritor, Volvo Ink Brake Pact
DOT Proposes Improving Fuel Economy in Light Trucks
Transportation Secretary Norman Y. Mineta said Friday that the National Highway Traffic Safety Administration would seek to increase the fuel efficiency standards for light trucks in the 2005, 2006 and 2007 model years.Through a notice in the Federal Register, NHTSA said is proposing new corporate average fuel economy standards would be 21 miles per gallon in 2005, 21.6 mpg in 2006 and 22.2 mpg in 2007.
The new standard would apply to pickup trucks, vans and sport-utility vehicles – all of which are used by the trucking industry in some capacity.
ArvinMeritor, Volvo Ink Brake Pact
ArvinMeritor Inc. said that it’s Commercial Vehicle Systems division has won a contract from Volvo Group to supply air disc brakes for both Renault and Volvo heavy-duty trucks.The four-year contract, which begins in 2004, is valued at more than $250 million, the Troy, Mich.-based company said.
The contract is "a continuation of existing business" between ArvinMeritor and Volvo, the company said. Transport Topics
(Click here for the full press release.)
ILWU Sends Contract to Members
An assembly of International Longshore and Warehouse union leaders said yesterday they had endorsed a tentative contract with port operators by a 94.4% margin and sent the proposal to the rank and file for a January vote.The six-year contract deal between the International Longshore and Warehouse Union and the Pacific Maritime Association, which represents the 29 major West Coast ports in the United States, was reached with the help of federal mediation in November after a 10-day lockout at the harbors. It gives dockworkers significant improvements in benefits and allows port operators to install the timesaving information technology they had sought for years.
The contract now goes to the union’s 10,500 members.
The ILWU said in a statement that the member ballot will be held in the beginning of January and the votes will be counted on Jan. 24.
The union said the contract needs a simple majority to be approved. However, if any one of 10 union voting blocks passes the contract by less than 50% plus one, the overall vote must be 60% plus one to be approved. Transport Topics
International to Lay Off 250 at Ohio Plant
International Truck & Engine Corp. said Thursday that it planned to lay off 250 workers in January and slash truck production due to weak demand for medium-duty trucks, the Associated Press reported.The layoffs at the company’s Springfield, Ohio facility will go into effect Jan. 3, 2003, International said. The company employs about 2,000 workers, AP said.
A spokesman said that the company would trim its daily truck output to 143 medium-duty trucks from the 162 it currently makes, AP reported.
International is a division of Warrenville, Ill.-based Navistar Corp. Transport Topics
Discrimination Suit Filed Against FedEx
FedEx Corp. was sued by 26 minority workers who claim that the company failed to promote them or pay them as well as white employees, Bloomberg reported.Filed in Alameda County State Court in California, the employment discrimination suit seeks class-action status for all minorities employed in California, Bloomberg said.
A FedEx spokeswoman told Bloomberg that the suit is “without merit.” The plaintiffs are seeking a court order to bolster the ranks of FedEx’s management, in addition to “hundreds of millions” of dollars, the workers’ lawyer said.
FedEx is the second-largest trucking company in the United States and Canada according to the 2002 Transport Topics 100 list. Transport Topics
Venezuelan Strike Continues to Disrupt Oil Shipments
A strike by workers in Venezuela continued to disrupt oil shipments from the world’s No. 5 producer of crude, Bloomberg said, pushing the price of oil higher.Crude oil is distilled down to gasoline and diesel fuel, with changes in cost sometimes being passed onto consumers at the pump.
The ongoing strike even overshadowed an announcement by the Organization of Petroleum Exporting Countries agreed to increase their production quotas to 23 million barrels from the current 21.7 million, Bloomberg reported.
The price of oil rose as much as 25 cents to $28.26 in electronic trading on the New York Mercantile Exchange, Bloomberg said. Transport Topics
Investment Co. Buys Stake in Raba
A Hungarian investment company, Wallis Rt., said Friday that it has purchased a minority stake in auto parts maker Raba Rt., Bloomberg reported.The company bought an 8.38% stake in the manufacturer of truck axles and other parts from Graboplast Rt. – a company Wallis owns a majority stake in already, Bloomberg said.
Wallis made the move to simplify its ownership structure, Bloomberg reported. Transport Topics
