After operating under bankruptcy protection twice in the last two and a half years, the country’s number two auto hauler — Performance Transportation Services Inc. – has announced that it will cease operations and go out of business. The final blow to the hauler’s business came earlier this month when the Teamsters struck PTS due to a court ordered wage cut.
Despite the downfall of PTS, U.S. auto shipments aren’t expected to be affected by the closure. Since the strike – which began on June 9 — automakers have developed contingency plans to ensure dealership deliveries remained on schedule.
PTS CEO Jeff Cornish blamed the Teamsters’ leadership for the ultimate downfall of the company. “Management and many of our Teamster members were willing to make the required sacrifices to save the company,” Cornish said to employees in a letter. “But the leadership of the union had a different agenda.”
The Teamsters struck after a court ruled that PTS could reduce union pay by 15 percent for 2 months. The Teamsters have reported that the “vast majority” of the 1,250 striking drivers have found other jobs.
