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U.S. Trucking Giant Canada Bound: Con-Way Picks Calgary as Western Hub

According to Calgary Chamber of Commerce President Kevin Gregor, the city is a natural choice because a transportation corridor between Alberta and Mexico is in development and because Calgary boasts several large retailers' distribution centers.

As an LTL carrier, Con-Way will be attractive to retail chains that want to move merchandise quickly. Industry sources expect the company to base its Canadian operations in Toronto while running its western Canadian operations in Calgary. Calgary Herald (04/25/00) P. D1; Robertson, Grant

UPS Unit to Offer Electronic Payment to B-to-B Customers

Chatham Truckmaker Warns of More Layoffs

Greg Caron of Canadian Auto Workers Local 127 expressed hope that the market will rebound and said there will be no layoffs until after the plant shuts down for two weeks in July, as it does every year. He said International "always posts layoff notices for the worst case scenario" and that orders dictate the final decision. London (Ontario) Free Press (04/25/00) P. A4

Some AWG Replacement Workers Say They Were Misled

The temporary workers, who came in from other parts of the country, said they had to work 12 hours a day, suffered injuries on the job, and received pay that was lower or slower than they expected.

The union members were locked out after AWG outsourced some operations to other firms, including Elite Logistics, which is now running the Springfield warehouse.

Martin Street, a senior vice president at Elite's parent company, said the employees were brought on for six-day, 72-hour weeks but that the company requested that they put in seven-day weeks during the transition phase. Elite engaged recruiting firms to find temporary workers to fill the gap until permanent employees were brought on.

Street also denies the claims of work-related injuries that Tomeyca Grier said she suffered while driving a pallet jack – even though, she said, she had not received any training. Street said all drivers need to pass a forklift test before driving one, and the Occupational Safety and Health Administration said it has not received any complaints regarding Elite.

Rick Gardner of Teamsters Local 245 said the Teamsters are against companies bringing in replacement workers but knows that the replacements are sometimes brought in without knowing of the labor disputes. Associated Press (04/25/00)

Metro East Gains Recognition as Distribution Hub

Southwestern Illinois will be touted as being among the best U.S. small markets in next month's Corporate Real Estate magazine, and Jim Pennekamp of the Leadership Council Southwestern Illinois says the trade media's interest could bring more jobs and companies.

According to Steve Lanter of Lanter Co., the area is beginning to attract those who once thought they needed a site near Chicago, and Lanter itself is bringing in more companies. According to observers, the area's roads will need to be maintained, and some expansions may be necessary to Interstate 255 and to a proposed extension of Illinois 15 to I-64.

The area boasts flat land, rail and highway infrastructure, and barge access, and Pennekamp says it typically costs shippers 20% less to ship from the area than other U.S. regions. Another attraction for companies looking for warehouse sites is the relatively cheap land.

Some have criticized the growth of warehousing, saying the amount of farmland claimed by new warehouses may be too much for the small amount of jobs produced, although Pennekamp says aerial photos reveal plenty of land available. But the region will need to plan ahead for the best use of resources, he says. St. Louis Post-Dispatch (04/24/00) P. 5, St. Clair-Monroe Post Section; Dalin, Shera

Railport Opponents Gather, Railroad Still Looking

Since scuttling the proposed Maple Park site, the railroad has been quiet about its plans, but it says it needs to build a new transfer terminal to the west of Chicago.

Some DeKalb County residents met recently about the proposal and will meet again Wednesday night, and a group of opponents has joined those who fought the Maple Park plans to form United Northern Illinois Citizens Opposing Railport Expansion. Opponents fear that the rural character of the area will be tarnished by traffic and industry if a hub is built there and say the railroad should say openly whether it is considering a different northern Illinois site.

Town leaders in Rochelle, Ill., have spent over a year working on a proposal for a transfer terminal there and met in March with the railroad, but a UP spokesman had no comment on whether an agreement with that town is likely. Associated Press (04/24/00)

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