- Font Size:
- Default font size
- Larger font size
BY KEITH BENMAN
Times Business Writer | Tuesday, April 08, 2003 | (No comments posted.)
EAST CHICAGO -- An Iowa trucking company's takeover of hauling duties at Praxair's East Chicago industrial gas plant has gone smoothly, according to union and company officials.
Teamsters Local 142 has negotiated a new contract with Ruan Transportation Management Systems, of Des Moines, which recently took over hauling duties at Praxair, according to Carl Vonasch, a business agent for Local 142.
There had been fears Praxair drivers might see steep wage cuts or lose their jobs when Praxair originally revealed its plans to outsource hauling duties at its East Chicago plant.
The new contract keeps the top hourly rate of $20 per hour in place and all 46 Teamster drivers working for Praxair were kept on the job by Ruan, Vonasch said. Drivers also get a mileage allowance of 42 cents to 44 cents per mile driven.
Ruan always tries to keep current drivers on the job and to work with organized labor when it takes over hauling duties for other companies, according to Kent Havens, Ruan vice president for labor relations.
"There is a cost to doing that," Havens said on Monday. "But on the other hand, when you have a good, experienced work force it makes for a smooth transition."
He said Praxair's drivers had the necessary Department of Transportation certifications for handling hazardous cargoes and a long-established safety record.
In November, Praxair had filed a Worker Adjustment and Retraining Notification (WARN) with the state in which it specified possible layoffs in its hauling operations. Discussions with drivers about the possibility of outsourcing led to friction between the drivers and management. At one point, Teamsters Local 142 filed an unfair labor practice charge against Praxair with the National Labor Relations Board, citing threats to drivers' jobs.
Those difficulties have been ironed out by the new contract with Ruan, according to Vonasch.
"Ruan was very up-front with us and for a first-time agreement it's a very good one," Vonasch said. "We hope to establish a good relationship with them."
An affirmation of 100 percent driver support for the Teamsters in a card-signing drive before Ruan's takeover may have helped convince the company to voluntarily recognize the Teamsters, according to Vonasch.
The new contract has a five-year term and brings back a Teamster-sponsored pension plan that was dropped some years ago for a company one, according to Vonasch.
Ruan Transportation is one of the nation's largest privately held trucking companies and has 200 facilities in the United States. It already has hauling contracts with a number of other Praxair locations.
Praxair is based in Danbury, Conn., and is a Fortune 500 company with operations worldwide. It supplies industrial gases, high performance coatings and related services. In Northwest Indiana, the steel industry is a prime customer.
Keith Benman can be reached at kbenman@nwitimes.com or (219) 933-3326.
Back to story No comments posted.
- It wasn't clear, concise or focused on the topic in the story.
- It was a personal attack, vulgar, explicit or degrading, used actual or implied profanity or contained potentially libelous statements.
- It accused someone of being guilty of a crime.
- It promoted violence or illegal acts.
- It contained telephone numbers or street addresses, or e-mail addresses and links to Web sites other than nwi.com or government agencies.
In no way do these comments represent the views of The Times or Lee Enterprises.
Passionate views, pointed criticism and critical thinking are welcome. Name-calling, crude and profane language and personal abuse are not welcome.
Reader comments will not be edited - they will be approved or declined. They may be used in the print edition of the newspaper.
If you feel a posted comment has violated these guidelines, please email our New Media team the commenter's name, the comment and a link to the article.
For more information please read our Terms of Service.