News Briefs - Feb. 13
- Laid-off Workers Remained Jobless Longer in 4Q
- 3,500 Western Star Trucks Recalled
- Hub Group Finds Accounting Problems at Unit
- NHTSA Rejects Call for Ford Explorer Probe
- Md. Bill Would Toughen Penalties for Trucks
- UAL Mechanics Reject Pay Offer
- Dana Corp. Reports Loss for 2001, 4Q
- Teamsters Aim to Represent LAPD
- TransForce Completes Purchase of Tri-Line Logistics
- EGL Improves 4Q Results
- 3,500 Western Star Trucks Recalled
Laid-off Workers Remained Jobless Longer in 4Q
The number of workers laid off from U.S. companies who remained unemployed for more than 30 days jumped to 486,406 in the fourth quarter of 2001, a sharp increase from the reading of 427,070 in 2000.If people are out of work for an extended period, they are likely to cut back spending, which could which cost the trucking industry business.
The Bureau of Labor Statistics’ findings on Wednesday marked the fifth consecutive quarter that “extended layoffs” have increased.
The manufacturing sector, one of trucking’s most important customers, accounted for 35%of extended layoffs in the quarter.
3,500 Western Star Trucks Recalled
The National Highway Traffic Safety Administration recently released the details of its Jan. 2 recall of 3,500 Western Star trucks.The models affected, according to the NHTSA Web site, are the 4800, 4900, 5800, 5900 and 6900 and were manufactured between December 1998 and February 2000.
On some of these vehicles with Caterpillar 3406E and C-15 engines there is interference between the positive battery cable and the electronic control module to the engine. Chafing can wear through the battery cable insulation, which could cause a short circuit and a fire. Transport Topics
Hub Group Finds Accounting Problems at Unit
Hub Group Inc. disclosed late Tuesday that it has uncovered irregularities in the accounting at its majority-owned specialized logistics and distribution services subsidiary that could have caused it to overstate its earnings in the past three years by as much as $4 million.Hub Group Distribution Services, founded in 1990, is 65% owned by Hub Group, the company said. The remaining 35% is controlled by the company’s former president.
The freight transportation management company has hired the law firm of Mayer, Brown, Rowe and Maw to investigate the irregularities. Meanwhile the company will postpone release of its earnings statement until March.
The Lombard, Ill.-based company’s press release said that it is not clear exactly when the irregularities occurred, but that the company’s results during 1999, 2000 and 2001 were all affected. Transport Topics
( for the full press release.)
NHTSA Rejects Call for Ford Explorer Probe
The National Highway Traffic Safety Administration denied a request late Tuesday by Bridgestone/Firestone Inc. for a defect investigation into the Ford Explorer, the Associated Press reported.Bridgestone/Firestone had asked for an inquiry into the handling and control characteristics of the Explorer following a tread separation of a rear tire, the AP said.
The tread separations on Firestone tires have been blamed for 271 deaths and hundreds of injuries, some of which occurred when the Ford Explorers rolled over. Transport Topics
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Md. Bill Would Toughen Penalties for Trucks
A new bill introduced into the Maryland House of Delegates would make truck drivers and trucking companies more liable for damages caused by operating their trucks illegally, the Associated Press reported Monday.The example held up by lawmakers favoring the bill is a June 1999 accident where a truck carrying an improperly loaded piece of heavy equipment tore into a pedestrian bridge over Interstate 695 killing one person and snarling traffic during rush hour. Existing Maryland law only allowed the driver to be fined $880 and the company was not eligible to be prosecuted, the AP said.
State Transportation Secretary John Porcari said that unsafe operation of commercial vehicles is a priority of his and this legislation is a way to toughen penalties for unsafe driving practices.
Under current law a first-time offender in Maryland convicted of violating size and weight regulations can be fined up to $1,000. The new bill, the AP reported, would stiffen that penalty to a $2,000 fine and up to three years in prison if that violation is found to be the primary reason for the death of another person. Transport Topics
UAL Mechanics Reject Pay Offer
Mechanics and cleaning crews at United Airlines rejected a 37% pay increase Tuesday and voted to authorize a strike Feb. 20 against the airline, news services reported.A strike could disrupt the schedules for the cargo carried in passenger planes, which is carried by trucks in pickup and delivery services.
The offer reflected the recommendation of a presidential emergency board, which had been accepted three weeks ago, Reuters said.
The Associated Press said that 86% of the 13,000 union members, represented by International Association of Machinists and Aerospace Worker District Lodge 141-M, approved the strike.
Dana Corp. Reports Loss for 2001, 4Q
Dana Corp., which makes parts for both light and heavy trucks, reported a net loss for 2001 on Wednesday of company $298 million, or $2.01 per share, compared with a net income of $334 million, or $2.18 per share, for 2000.For the fourth quarter, the net loss was $14 million, or 9 cents per share, compared with a net loss of $2 million or 1 cent per share, in the year-earlier period. Both results excluded non-recurring costs.
The year-end results include charges related to Dana's restructuring plan announced in October, which calls for a work force reduction of more than 15% and the closure or consolidation of more than 30 facilities.
Dana Chairman and Chief Executive Officer Joe Magliochetti said in a statement that he remains cautious about the prospects for recovery in the short term. Transport Topics
(Click here for the full press release.)
Teamsters Aim to Represent LAPD
The International Brotherhood of Teamsters has begun a campaign to represent Los Angeles police officers and about 200 officers are backing the campaign so far, the Los Angeles Times reported Tuesday.The union, which has about 1.5 million members nationwide, represents 297 law enforcement agencies in addition to thousands of truck drivers.
Two months ago, 400 Nevada state troopers affiliated with the Teamsters, the Times said. On Tuesday, the Teamsters started sending blue pledge cards to the LAPD members to gauge support for the switch in representation. Transport Topics
TransForce Completes Purchase of Tri-Line Logistics
Canadian trucking firm TransForce Inc. announced Tuesday that it has completed its acquisition of some of the assets of Tri-Line Logistics, a division of Tri-Line Expressways Ltd.The newly acquired division had been operating as a piece of TransForce since Feb. 1, under the name Trans4 Logistics, from its current headquarters in Mississauga, Ontario.
TransForce is one of Canada's largest trucking companies with less-than-truckload, truckload, specialized transport and logistical and warehousing services. Transport Topics
EGL Improves 4Q Results
Editor's Note: The story below is a correction of a story that ran in the Feb. 12 News Briefs, which has now also been corrected.GL Eagle Global Logistics announced Tuesday that it had fourth-quarter earnings of $821,000, or 2 cents per share, in 2001, compared with a loss of $42.5 million, or 91 cents per share in the fourth quarter of 2000,
The company said its fourth-quarter results were bolstered by the positive impact of $954,000 from unusual items relating to the sale of its former headquarters facility.
The company, which provides global freight, supply chain and information services, claimed a net loss of $40.2 million, or 84 cents per share for the year ended Dec. 31, 2001, compared with a loss of $722,000, or 2 cents a share in 2000. Transport Topics
( for the full press release.)