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JC Penney Drops Oak Harbor Freight Lines as Shipper
Move Is Response To Labor Rights Violations
December 9, 2008
(Washington, D.C.) – National retailer JC Penney (NYSE: JCP) has stopped using Oak Harbor Freight Lines to ship its merchandise in the western United States. This decision comes on the heels of a report by the International Labor Rights Forum, which found that Oak Harbor Freight Lines has violated international labor rights standards. Teamster members employed by Oak Harbor Freight have been on strike since September 22 because of violations of federal labor laws that protect workers’ rights, such as coercing and threatening employees, and making unlawful changes to working conditions.

Oak Harbor is a trucking firm headquartered in Auburn, Washington, and is one of the largest regional freight carriers in the Northwest. The report (ILRF Reports Numerous Labor Rights Violations Committed by Oak Harbor Freight Lines | International Labor Rights Forum) found that:

African-American and female replacement employees working at Oak Harbor have suffered discrimination in their work assignments;
Oak Harbor’s decision to permanently replace its employees was a tactic to interfere with a legitimate union’s attempt to bargain a new collective agreement;
Oak Harbor hired a subcontractor, Jim Rexroat, who has used unethical and unlawful business practices, including deceptive hiring practices and failing to pay workers the wages they were promised; and
Oak Harbor’s decision to eliminate health coverage for its retired employees is incompatible with the ethical principles to which the company claims to adhere.
In response to the workers’ strike, now in its 12th week, the company unilaterally stopped paying for health care benefits for current workers and retirees.

Other retailers, after learning of the workers’ rights violations, also fired Oak Harbor. The retailers include REI, Urban Outfitters and Gap.

“We are pleased that JC Penney has made the socially responsible decision to cease working with a company that has so blatantly violated workers’ rights,” said Tyson Johnson, Teamsters International Vice President and Freight Division Director. “We will continue to take our message to Oak Harbor’s customers and bankers until they stop these abuses. Oak Harbor should be willing to negotiate with our workers in good faith and allow for a dignified retirement.”

press contact
David White (202) 624-6911
 
I feel bad for the hard working Oak Harbor drivers in Reno who are seeing accounts like JC Penny go to the competition. I use to see these guys all the time and they are top notch, and yes I drive for the competition.
 
I feel bad for the hard working Oak Harbor drivers in Reno who are seeing accounts like JC Penny go to the competition. I use to see these guys all the time and they are top notch, and yes I drive for the competition.

I agree, for most of us we just want to go back to work with decent working conditions but if ed and dave will not talk to the union we will continue to follow the trucks. We will not go back to work under their previous offered conditions. I am sorry if the nonunion guys are feeling the pinch but they only have the wages they have because we have stood strong and built them up. ofhl is in a lot of trouble. We all want to retire from this company but at what cost?
 
Teamsters: JC Penney Drops Oak Harbor
12/10/2008
John Gallagher
Associate Editor

The Teamsters union said $20 billion retailer JCPenney dropped Oak Harbor Freight Lines as its western U.S. carrier in support of the union's strike against the company.

"Our position has been that this is a dispute between the union and Oak Harbor - we're not taking sides," said JCPenney spokesman Tim Lyons.

He acknowledged JCPenney recently consolidated with a larger national carrier traffic previously carried by Oak Harbor. However, it was an efficiency move that would have been done with or without a strike at Oak Harbor.

The strike, which started Sept. 22, was called after labor talks stalled over claims of unlawful worker rule changes and threats by management against employees.

"We are pleased that JC Penney has made the socially responsible decision to cease working with a company that has so blatantly violated workers' rights," said Tyson Johnson, Teamsters International Vice President and Freight Division Director. "We will continue to take our message to Oak Harbor's customers and bankers until they stop these abuses. Oak Harbor should be willing to negotiate with our workers in good faith and allow for a dignified retirement."

The International Labor Rights Forum, a labor advocacy group, also claims the company violated federal anti-discrimination laws and accuses the carrier of unethical business practices.
 
Would the lost revenue from Pennys have covered the settelment of the next union contract?

In other words by having their national accounts go to other LTL companies, would Oak Harbor been producing enough profit from say a Penneys to cover any additional monies to have setteled the new contract proposals?

If thats the case the Oak Harbor higher ups are cutting their own throats in lost revenue by not setteling the wage,and benefit package reguarding a contract renewal,in my opinion.
 
Would the lost revenue from Pennys have covered the settelment of the next union contract?

In other words by having their national accounts go to other LTL companies, would Oak Harbor been producing enough profit from say a Penneys to cover any additional monies to have setteled the new contract proposals?

If thats the case the Oak Harbor higher ups are cutting their own throats in lost revenue by not setteling the wage,and benefit package reguarding a contract renewal,in my opinion.

My guess is between JC Penney and the Gap (if they are in fact gone) it would have covered the contract for well past 5 years. Don't have a clue what Ed & Dave are thinking. Maybe they wanted to down size. It's working.
 
My guess is between JC Penney and the Gap (if they are in fact gone) it would have covered the contract for well past 5 years. Don't have a clue what Ed & Dave are thinking. Maybe they wanted to down size. It's working.
:hysterical::hysterical::hysterical: That is what they wanted down size to nothing.:TR10driving03:
 
Would the lost revenue from Pennys have covered the settelment of the next union contract?

In other words by having their national accounts go to other LTL companies, would Oak Harbor been producing enough profit from say a Penneys to cover any additional monies to have setteled the new contract proposals?

If thats the case the Oak Harbor higher ups are cutting their own throats in lost revenue by not setteling the wage,and benefit package reguarding a contract renewal,in my opinion.

The company did not ever claim economic hardship. Everything that has been happening indicates a desire to oust the union. I am sure they underestimated the resolve of their union employees. I don't think the company thought any major accounts or so many minor accounts would be affected. Obviously the company is unable to understand the law of diminishing returns and has spent many times the amount needed for a fair contract. Unwilling or unable to back off due to stubborn pride ,the trainwreck is almost inevitable. Just an opinion
from a striking worker.
 
The company did not ever claim economic hardship. Everything that has been happening indicates a desire to oust the union. I am sure they underestimated the resolve of their union employees. I don't think the company thought any major accounts or so many minor accounts would be affected. Obviously the company is unable to understand the law of diminishing returns and has spent many times the amount needed for a fair contract. Unwilling or unable to back off due to stubborn pride ,the trainwreck is almost inevitable. Just an opinion
from a striking worker.

And this statement hits directly at the truth. The company did not claim economic hardship because they do not trust the bargaining unit. The bargaining unit does not trust the company. If this relationship had been open and honest for years, then the company could have produced information about the industry, company direction, competition, and financials, and the negotiations could have progressed with both sides trying to make it work (see Penn). The union would have been willing to work up a deal that benefitted both sides.

However, neither side trusts the other. Nobody believes what the other side is saying, so each has to assume what the real motives are. "Everything that has been happening indicates . . ." is the most compelling statement. What else is there to go on?
 
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