Last-minute proposal gives car haulers a 24-hour reprieve from strike

ALEXANDRIA, Va. (June 1) ­ The Teamsters union delayed a strike against U.S. auto haulers for 24 hours after management rescinded demands to use Mexican drivers and trucks to deliver cars to the United States.

Negotiators representing 17 trucking companies submitted a new contract proposal to the Teamsters less than an hour before a midnight strike deadline yesterday. Union leaders said they wanted to review it and resume bargaining today.

Killing the proposal to use Mexican labor was “vitally important,” the Teamsters said in a statement. Under NAFTA, Mexican vehicles are to be allowed full access to U.S. highways starting Jan. 1, 2000. Currently, Mexican vehicles are restricted to a narrow commercial zone along the U.S. border.

“Management’s proposal to use Mexican trucks was not only an attack on our members’ job security, it was also a dangerous threat to highway safety,” said union president James P. Hoffa, citing a U.S. Dept. of Transportation study that questions the mechanical fitness of Mexican trucks.

Talks between the car haulers and the Teamsters have been ongoing since February. The union’s 12,200 drivers covered by the expiring contract voted overwhelmingly last month to authorize a strike.

The union wants higher wages and an increase in the $1500 US retirement benefits for 25-year retired employees, who also receive no retirement health benefits.

The trucking companies say they need to reduce costs in order to remain competitive with railroads. They commissioned a study that showed that wages and benefits for drivers have increased 33% since 1994 to an average of $68,000 a year, while freight rates have slightly declined.