News Briefs - Dec. 3
- Ford Plans Layoffs, Benefit Cuts
- Teamsters Vote to Strike Over Ribbon Flap
- Michelin Expects a Rough Start to ’02
- Ashcroft Announces Counterrorism Deal With Canada
- Fox, Davis to Discuss California-Mexico Border
- Transport Bill Takes $450 Million from State Projects
- Fed Expected to Cut Rates Despite Optimism
- Native Americans Appeal Rail Tax Decision
- OPEC Chief Thinks Russia Will Cut Output
- Calif. County to Change Road Toll Structure
- Ford, Caterpillar Form Logistics Pact
- Dana to Consolidate Groups
- Indiana Conducts Surprise Truck Checks
- Ashley Transportation Closes Doors
- Teamsters Vote to Strike Over Ribbon Flap
Ford Plans Layoffs, Benefit Cuts
Struggling automaker Ford Motor Co. said Monday it plans to lay off 630 people and reduce benefits for 45,000 white-collar workers. These moves are expected to save the company about $300 million a year.ord, which has seen sales slip due to a combination of the sagging economy and a number of serious recalls, will suspend matching contributions on 401(k) plans for U.S. salaried employees, increase health care premiums, eliminate merit pay increases for Ford's top 2,200 executives and end one production shift at its pickup truck plant in Edison, N.J.
The cutback in New Jersey means that Ford will produce about 84,000 vehicles at this plant, so there will fewer cars for trucking companies to haul from this plant to the showrooms.
In August, Ford said it would cut 4,000 to 5,000 salaried positions by the end of 2001, Reuters reported. More cutbacks are expected when the company details a broader restructuring plan next month. Transport Topics
Teamsters Vote to Strike Over Ribbon Flap
Members of the Teamsters Local 92 have voted to strike at United Parcel Service over a uniform policy that got a driver fired in Ohio, the Associated Press reported.However, a company spokesman said the union can’t strike over the issue.
The driver, a union steward at UPS, was fired Thursday after 28 years with the company for wearing a red, white and blue ribbon on his uniform. The ribbon was part of a button identifying him as a Teamster to new employees and supervisors.
The worker’s supervisor asked him to remove the ribbon and after he refused, he was fired, the AP said.
UPS spokesman Norman Black said that UPS, No. 1 on the Transport Topics 100 list for 2000-2001, had provided its drivers with flag pins and decals so that they could show their patriotism and that the company would not apologize for its strict uniform policy.
Black also said that a strike by the Local, which voted 137-12 to authorize the walkout, would be illegal. Transport Topics
Michelin Expects a Rough Start to ’02
Michelin & Cie, the largest manufacturer of tires in Europe, said it expects to have a difficult first half in 2002, the Swiss newspaper L'Agefi reported.The paper reported that Chief Financial Officer Michel Rollier said sales would be down as the U.S. truck market has dropped by 50% in 2001. He did point to a positive outlook from China, where the company is looking to expand, Bloomberg reported.
The company’s first-half operating profit was off by 9% due to higher rubber and oil prices and slow North American tire sales, the business news wire said. Transport Topics
Ashcroft Announces Counterrorism Deal With Canada
Attorney General John Ashcroft said Monday that the United States and Canada have agreed on a plan designed to keep terrorists out of both countries while speeding the flow of vital trade goods, the Associated Press reported.The program includes expanding integrated border enforcement teams, adding Canadian officials to the U.S. foreign terrorist tracking task force and tightening the visa entry process.
The addition of National Guard members and military helicopters at the border should also help to improve security and speed the flow of trade, AP reported.
The National Guard also will supply intelligence analysis and training, threat assessments and additional personnel, the Justice Department said. Transport Topics
Fox, Davis to Discuss California-Mexico Border
Mexican President Vicente Fox and Calif. Gov. Gray Davis are scheduled to meet Monday to discuss ways to speed traffic across the border between Mexico and California while maintaining adequate security, Reuters reported.At the meeting, which will take place in Mexico City, Gov. Davis said the two will discuss how to limit delays for people that have long-established histories of crossing over.
Since Sept. 11, security has been exceedingly tough at all points of entry along U.S. borders. As a result, drug seizures are up dramatically along the U.S.-Mexico border, Reuters said. Much of the drugs coming into the U.S. from Latin America travel through Mexico. Transport Topics
Transport Bill Takes $450 Million from State Projects
The transportation appropriations bill for fiscal 2002 contains a provision removing $450 million from state-controlled projects and reassigning it to projects designated by Congress, the Wall Street Journal reported.The bill passed the House by a 371-11 vote. The Senate is expected to also approve the bill sometime this week.
Some in Congress have objected to the provision, saying that the bill tampers with the 1998 highway act, the Journal said.
As an example, the Journal cited a $25 million community-preservation pilot program, which appropriations leadership increased to $276 million with virtually every dollar earmarked.
The paper said that it was unclear if any states would lose significant amounts of funding as a result of the bill, but that Kentucky, Alabama and West Virginia were big winners under the new allocation plan. Those three states are slated to receive nearly 20% of the $1.1 billion in federal highway aid. Transport Topics
Fed Expected to Cut Rates Despite Optimism
The Federal Reserve is expected to cut interest rates for the 11th time this year when it meets on Dec. 11, the Wall Street Journal reported.The cut is considered likely, the WSJ said, even though the group's general feeling about the economy is better than it was in the immediate aftermath of Sept. 11. Since then the central bank has cut rates three times by a total of 1.5%. The cuts have brought interest rates to their lowest point in 40 years.
Some analysts have speculated that the Fed would not cut rates after a series of generally positive economic reports, the success of the war in Afghanistan and a rally in the stock market.
However, comments like those of Fed Governor Laurence Meyer, who said it would be "misguided" to hold back on cutting rates, have fueled expectations that another cut is imminent, the newspaper said. Transport Topics
Native Americans Appeal Rail Tax Decision
The Fort Peck Assiniboine and Sioux Tribal Nation has filed an appeal of a district court decision that denies them the right to tax the Burlington Northern Santa Fe railroad. The railroad carries freight across 80 miles of the tribe's 2.2 million acre reservation in northeast Montana.Railroads compete with trucks for some long-haul business and both compete and cooperate in intermodal movements.
The tribe has filed a brief arguing that the railroad's conduct, in particular its transporting of hazardous materials, endangers the health and welfare of the tribe.
"Without question, there are some very important legal issues involved here, but our situation goes beyond legalities," said Tribal Chairman Arlyn Headdress. "The health and well being of the 8,000 people living on the reservation are very much at stake. And after the incidents of Sept. 11, I think millions of Americans would like to know exactly what kinds of dangerous materials the railroad is transporting and what steps they are taking to ensure that this material doesn't fall into the wrong hands." Transport Topics
(Click here for the full press release.)
OPEC Chief Thinks Russia Will Cut Output
Ali Rodriguez, secretary-general of the Organization of the Petroleum Exporting Countries, said that he believes Russia will reduce oil production next year to help boost sagging prices, Bloomberg reported Monday.OPEC agreed last month to a 1.5 million barrel-a-day cut in production, dependent on non-OPEC nations committing to a smaller cut. Russia, the world's second largest oil exporter, has not yet given a firm decision as to whether it would cut production.
The price of oil fell again on Monday, after Iraq resumed exports under a new six-month extension of United Nation supervised sales, Reuters reported. International benchmark Brent crude was down 42 cents to $18.72 a barrel in London on Monday morning.
Also Monday, an Angolan official said that the country will increase production from the current 750,000 barrels per day to 1 million per day next year, the Associated Press reported. Transport Topics
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Calif. County to Change Road Toll Structure
/h4>Officials in Orange County, Calif., said they are planning to overhaul the toll structure on roads used by 220,000 drivers every day.
The new toll scheme, to be launched in early 2002, would involve higher rates during peak travel hours and higher rates for those paying cash, a press release from Transportation Corridor Agencies said.
Under the plan, which will require approval by board of directors of the TCA, rates during peak hours on the mainline plaza would increase by 50 cents for cash payers and 25 cents for those using FasTrak, a transponder system. During off-peak travel hours, transponder users will see no increase while cash payers will 50 cents more.
No differentiation was made for truck rates in the press release. Transport Topics
(Click here for the full press release.)
Ford, Caterpillar Form Logistics Pact
/h4>Ford Motor Co. and Caterpillar Inc. said Friday that they have entered into an alliance to develop a logistics information system to increase the speed at which service repair parts are delivered.
The new system will be phased in over the next few years and is part of Ford's overall plan to reduce order-to-delivery times for parts.
Ford said its dealers will also be able to share parts inventory information in real time, which will improve turnaround time and reduce backorders. Transport Topics
(Click here for the full press release.)
Dana to Consolidate Groups
Vehicle parts maker Dana Corp. said Monday that it would consolidate its engine and fluid businesses and that charges for the restructuring announced in October would total $445 million.The Toledo, Ohio-based company said about $289 million will be taken in the fourth quarter, while the remaining charges would be taken during 2002.
Dana also said it would integrate its axle manufacturing operations of its off-highway systems group with its commercial vehicle systems unit. Transport Topics
(Click here for the full press release.)
Indiana Conducts Surprise Truck Checks
Indiana state and local law enforcement agencies made a series of random tractor-trailer searches in the Indianapolis area on Sunday, WTRV reported on its Web site.The inspection occurred in truck stops, and although terrorism was the main focus, police screened trucks and their drivers for all sorts of violations.
Indiana State Police 1st Sgt. Dave Bursten said more random inspections will decrease the chances of an attack by tractor-trailer. Transport Topics
Ashley Transportation Closes Doors
Twelve-year-old truckload carrier Ashley Transportation Inc. has gone out of business, the Associated Press reported.Doug Reed, president of the Crossett, Ark.-based company, made the official decision in November. The company's last day of hauling was Oct. 19.
Ashley shipped a variety of dry freight, including paper, food products and chemicals, and had revenue of more than $20 million in 1999.
Reed blamed spiking insurance rates, tightened financing, unstable fuel costs, a shortage of drivers and the slowing economy as reasons behind the decision. Transport Topics
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