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A Victim of the Deregulated Road - NYTimes.com
The move followed several attempts in recent years to ease pressures on the company's finances. Earlier this month, the Teamsters union, which represents roughly 3,000 drivers and dock workers, agreed to a 9 percent wage cut, with a promise that workers would share the company's profits.
The company had asked workers in April to approve a 12 percent wage cut in return for a profit-sharing plan, but the rank-and-file members balked at the proposal.
Industry analysts were aware that St. Johnsbury, based in Holliston, Mass., was having difficulties, but assumed that the wage concession had given it breathing room.
Teamsters officials said they met with St. Johnsbury executives on Thursday, when the company outlined its bleak finances and relayed an order from its bank to liquidate the company. At the time, the company proposed a broad range of concessions, including cutting the work force by half, closing 24 of its 54 terminals and replacing the union's health and pension plans with less expensive St. Johnsbury plans
I geuss they thought they could gamble too.
The move followed several attempts in recent years to ease pressures on the company's finances. Earlier this month, the Teamsters union, which represents roughly 3,000 drivers and dock workers, agreed to a 9 percent wage cut, with a promise that workers would share the company's profits.
The company had asked workers in April to approve a 12 percent wage cut in return for a profit-sharing plan, but the rank-and-file members balked at the proposal.
Industry analysts were aware that St. Johnsbury, based in Holliston, Mass., was having difficulties, but assumed that the wage concession had given it breathing room.
Teamsters officials said they met with St. Johnsbury executives on Thursday, when the company outlined its bleak finances and relayed an order from its bank to liquidate the company. At the time, the company proposed a broad range of concessions, including cutting the work force by half, closing 24 of its 54 terminals and replacing the union's health and pension plans with less expensive St. Johnsbury plans
I geuss they thought they could gamble too.