A.M. Executive Briefing - April 6
This Morning's Headlines:
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Emery Worldwide Sues US Postal Service
The U.S. Postal Service has been hit with a complaint in the Court of Federal Claims from Emery Worldwide, in which the CNF subsidiary says USPS has violated Emery's contract to operate 10 USPS Priority Mail Processing Centers.According to Emery, a 1998 letter of agreement allows price increases with which USPS has refused to go along, while Bear Stearns analyst Edward M. Wolfe said the USPS will not acknowledge that the letter truly amended the initial contract. A Wolfe commentary opined that "CNF is really seeking to force a court judgment ... without waiting for the typical postal contract mediation process to unfold."
Volkswagen Chiefs Set to Take Places on Scania Board
Volkswagen Chairman Ferdinand Piech and two other top executives at the German firm will likely become members of Swedish truck manufacturer Scania's board once VW purchases a 34% share of Scania. However, Scania CEO Leif Ostling said main shareholders will be the ones to make that decision.Piech could take Anders Scharp's place as chairman of Scania later this year, some analysts say.
Ostling also said Volvo must reduce its share in Scania in order to increase Scania's stock liquidity. VW and Scania could put together joint ventures for sales/distribution, component purchasing, and medium-duty trucks, said Ostling. Financial Times (04/06/00) P. 25; Brown-Humes, Christopher; Burt, Tim
Move to Give Diesel Rebates Picks Up Steam in House
The Maine House of Representatives voted Wednesday to give preliminary approval to a bill that would rebate the 23 cent per gallon state diesel excise tax for those who purchased fuel from Feb. 1 to March 15, when prices doubled.However, the Appropriations Committee must determine how to fit the $3.6 million cost of the bill into the budget, and one Transportation Committee member doubted it could be done in light of the state's highway funding needs.
Other lawmakers questioned why truckers were singled out for rebates when increasing oil prices have had broad impact, as well as the wisdom of easing taxes on the out-of-state truckers who would make up about a third of those benefiting from the proposal. Associated Press (04/06/00); Adams, Glenn
Alberta Group Proposes Changes to Labor Standards Act
The Alberta Trucking Association is pushing for changes to the Employment Standards Code, which mandates 12 hours maximum work shifts followed by eight hours off, to resolve a disparity between the code and the country's trucker hours-of-service rules, which allow 15-hour shifts.Under a possible amendment now being considered, the HOS rules would also mandate 10 hours off following a shift. The trucking association wants the HOS regulations to supersede the requirements of the Employment Standards Code. Land Line Magazine Online (04/06/00)
Union Agrees to Restraining Order
Teamsters have consented to a restraining order that would keep union members from harming or blocking Refrigerated Transport Express trucks or threatening, harassing, or attacking RTX workers.RTX attorney Ron Petrikin said a videotape of a Tuesday night assault on an RTX driver in Mansfield, Mo., depicts assailants also involved in protests against Associated Wholesale Grocers outsourcing trucking and warehouse operations to RTX and three other companies.
But as of Wednesday there was little evidence that the union was involved in the attack, said Dale McGaw, police chief in Mansfield, and Rick Gardner of union Local 245 doubted that union members had anything to do with it, saying they were told not to break any laws. Associated Press (04/06/00)
Cummins Reaffirms Benefits Policy
Diesel engine manufacturer Cummins Engine will begin extending benefits to employees' domestic partners later this year despite opposition from a group of shareholders fighting the decision on religious grounds, Chairman Tim Solso said at the yearly shareholders' meeting this week.Solso also responded to a question on fuel-cell engines by saying the company is looking into the technology but does not expect it to be viable for another decade.
The company's March announcement of the domestic-partners policy has sparked rallies on both sides of the debate. On Tuesday, Solso said extending the benefits will not increase expenses much, is needed to attain quality employees, and reflects social progressiveness. Leading opponent Ben Manring cited religious opposition and also said the decision has undermined employee confidence in company executives and has caused customers to cancel orders. Indianapolis Star (04/05/00) P. C1; Heikens, Norm
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