A.M. Executive Briefing - Jan. 19
This Morning's Headlines:
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Allied Holdings Rises Again as Good Surprise Promised
Allied Holdings, the Georgia-based car carrier whose stock price rose close to 30% last week, saw another 19% rise Tuesday after it announced its fourth-quarter earnings would beat the analysts' consensus. Allied Holdings saw a drop in earnings and share price last year as the trend toward pickups and SUVs meant not as many vehicles could fit on each car carrier. The company responded by renegotiating major clients' rates. Atlanta Journal-Constitution (01/19/00) P. 12D; McNaughton, DavidNationsWay Liquidation Sought
Hoping to increase their chances of getting back wages, former NationsWay Transport Service employees are set to request Wednesday that the bankruptcy court judge liquidate, rather than reorganize, the bankrupt carrier. The 3,500 former NationsWay employees are owned close to $5 million.
NationsWay lawyer Donald Gaffney says a confidential draft plan aimed to appease other secured and unsecured creditors circulated Friday, but a filing from the unsecured creditors committee says the committee does not think the most recent plan differs from previous ones.
Unsecured creditors, some former employees among them, recently alleged in a motion that NationsWay's Chapter 11 filing was intended to benefit the carrier's secured creditors and principals. That motion is aimed to have the case converted from Chapter 11 reorganization to Chapter 7 liquidation. Gaffney disagreed with the allegation, saying NationsWay "is being liquidated anyway [and] we are just disagreeing on what procedures to use and what ultimate amounts get paid out." Denver Post Online (01/19/00); Colden, Anne
Local Mail Haulers Join National Postal Union
Truckers for Mail Contractors of America in Jacksonville, Fla., have voted to be represented by the American Postal Workers union. Largely representing federal government employees, the union has in recent years been attempting to sign up employees for private postal contractors.Roughly 95 truckers at the Jacksonville branch of Mail Contractors of America are joining the union; 89 voted in the election, with 58 supporting the unionization. Union supporters among the drivers cited a lack of organization and appreciation for the truckers, in addition to the desire for better benefits and pay.
Separately, local independent port trucker Tony Fernandez says aides to Gov. Bush were "very receptive" to his unionization drive when he met with them recently. In addition, he has met with national unions about prospective partnerships to organize independent drayers. Florida Times-Union (Jacksonville) Online (01/19/00); Gordon, Mark
Volvo Increases Scania Stake
With European Commission approval for the Volvo-Scania merger still pending, Volvo on Tuesday raised its stake in fellow Swedish truck manufacturer Scania to 45.5% of share capital and 30.6% of voting rights. Volvo will buy the controlling stake in Scania from Investor if the EC okays the merger, which would create the number-two heavy truckmaker worldwide. Financial Times (01/19/00) P. 30; Burt, TimTruck Driving School Close to Reality
The Wind River Training driving school in Lander, Wyo., made its final filing for a state private school license Friday. The school, designed to provide C.R. England with long-haul driving teams of four to six drivers per truck, could go into operation at the beginning of March at the earliest. The aim of the large driver teams is to allow drivers to get two weeks off for each two weeks on the road, allowing them more family time and therefore, it is hoped, cutting driver turnover.Already the recipient of $38,000 in funding from the Yellowstone Development District and the Fremont County loan fund, the school Friday asked the Wyoming Business Council for a convertible loan in the amount of $113,980. Billings (Mont.) Gazette Online (01/19/00)
Yellow Rolling Into Terminal
As Yellow Freight System prepares to move into a second Richfield, Ohio, terminal at a former Preston Trucking site, the company has also told the Teamsters union that it will be making changes in both short and long hauls.Yellow Freight will be changing many of its short-haul routes while increasing use of sleeper teams for Chicago-East Coast runs. The carrier, which already is the town's top employer with 850 employees at its current terminal, will be adding 150 employees at the former Preston terminal while eliminating or transferring some 24 long-haul jobs in Richfield. The changes, intended to reclaim customers who have moved to nonunion carriers, are to go into effect March 12.
Meanwhile, it was still uncertain Monday whether Teamsters Local 24 or Local 407 would be the bargaining agent for the new terminal. The current Yellow Freight terminal is north of the Ohio Turnpike, in Local 407's jurisdiction, while the former Preston site is south of the turnpike and thus in Local 24's territory.
Local 407 recently underwent a change in leadership, and new President Alex Adams said he would like to represent the new terminal while paying a $4-per-member monthly "service fee" to Local 24. Local 24 President Travis Bornstein has lately said that he would contest an attempt by Local 407 to move into Local 24's territory. Akron Beacon Journal (01/18/00) P. C7; Russell, John
Trimac Completes Purchase of DSI
The Canadian bulk carrier Trimac Transportation said it has completed its $68.3 million acquisition of Initial DSI Transports. Trimac purchased all of DSI's shares from the Rentokil Initial subsidiary United Transport America. Houston-based DSI provides liquid chemical, petroleum, and dry bulk service from its 34 U.S. terminals. Canada NewsWire (01/18/00)Comdata Backs Off 18 Wheels of Hope Involvement
Pointing to cost problems, Comdata said Monday it would be eliminating the annual 18 Wheels of Hope festival and soliciting donations to the charitable program on the Internet only. Charity partner America's Second Harvest will be seeking food donations on Comdata's LoadMatcher service, while Comdata will call off its own direct solicitation of donations. Comdata President Gary Krow said that industry desire for a simpler program was another motivation for the changes. Heavy Duty Trucking Online (01/18/00)© copyright 2000 INFORMATION, INC. Terms of Service
