APRIL 7, 2024 — 677 DETROIT MICHIGAN EMPLOYEES
The company has announced plans to lay off 677 workers at its auto parts sequencing plant in Detroit, Michigan on May 31, 2024. The layoffs will impact workers at the company’s two Universal-affiliated entities, Logistics Insights Corp. and Universal Dedicated of Detroit MI LLC.
According to informed sources, “Stellantis is pulling the work from Universal so it can give the contract to a non-union operator to save money running the warehouse, which supplies parts to the automaker’s nearby Jeep assembly plants.”
JANUARY 6, 2020 — Original post…
Warren, Michigan-based Universal Logistics Holdings appears to be responding to a weaker market for freight services by laying off 70 drivers at its three subsidiaries, Universal Intermodal Services, Universal Truckload Services and Roadrunner Intermodal Services. The drivers appear to provide port and intermodal services associated with Los Angeles and Long Beach, California ports. According to some employees, the company is reducing salaried drivers and relying more on independent contractors with their own trucks.
A company spokesperson for Universal claimed, “Given the dynamic nature of the transportation industry, our companies continue to make strategic business decisions – some growth-related and some efficiency-related – as part of marketplace fluctuations. We have also streamlined some of our operations.”
Roadrunner Intermodal told drivers provided letters to its drivers that noted, “soft freight conditions in 2019 have necessitated that we evaluate our current staffing levels” heading into 2020. As a result, with much consideration, we regret to inform you that Roadrunner Intermodal Services is reducing all company driver positions effective Friday, Dec. 20, 2019.”
Complicating matters are employee claims of actions taken after they decided to unionize and joined the Teamsters’ Local 848. And, of course, California’s union-backed AB-5 legislation which penalizes classifying workers as independent contractors.
According to the Teamsters…
“In direct and flagrant violation of California’s Assembly Bill 5, which unequivocally makes it illegal to misclassify California’s truck drivers as ‘independent contractors,’ multi-billion dollar logistics company Universal Logistics Holdings has fired up to 70 employee port and intermodal drivers in at least three subsidiaries – Universal Intermodal Services, Universal Truckload Services, and Roadrunner Intermodal Services. Drivers report that the company told them that if they buy their own trucks then they can come back to work as independent contractors.”
“Universal’s morally reprehensible action happens just weeks after 28 employee drivers at Universal Intermodal voted overwhelmingly to be represented by Long Beach-based Teamsters Local 848, all of which have now been fired. It appears they are being replaced by misclassified independent contractors, in flagrant violation of federal labor laws. Further, under Section 6 of California’s Assembly Bill 5 (AB5), “No provision of this measure shall permit an employer to reclassify an individual who was an employee on January 1, 2019, to an independent contractor due to this measure’s enactment.”
The union’s claims may have some merit since the company has settled a number of labor actions in the past.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
