Union of the United Steelworkers argues that the sell must be dependent on the buyer agreeing to honor the contract of the union. According to the reliable source, judge has recently ordered to block a Covington trucking firm, which is informed to lose an important contract with MeadWestvaco Corp of providing local trucking services. The former one failed to sell the excess trailers and trucks to the company that is mentioned in the contract. The reason behind this is a dispute that whether the later one would able to hire the union employees of the first company.
As the impact of the judge’s decision of Friday, near about fifty-nine people recruited by Team Carriers Inc in Covington lost their jobs on Monday.
As being informed in the ruling of the judge, the union of the United Steelworkers contended in the court according to the agreement if Team Carries was unable to execute the operations due to some unavoidable circumstances, the company had to arrange the lease, sale or transfer of its operations to another organization dependent on the other organization.
According to the reliable source, Team Carriers signed a deal with Garten Trucking that is reported to outbid Team Carriers for the contract of MeadWestvaco. It is also informed from the statement of the judge that according to the deal, the company, Team Carriers has agreed to sell some of its exclusive trailers and trucks that amount near about $250,000.
It is worth to mention over here that in the early part of this month the union planned to take legal action to pending the proposed equipment sale. It is also informed that the union received a court order sending matters influenced by the case in order to expedite the settlement.
Samuel Wilson, the judge of the case, ordered to block the sale of the company on a temporary basis. He took the decisions by acting within powers granted to the court. He believed that it is better to freeze the status quo of the company especially when there is a labor dispute within the company and that is subjected to arbitration.
In addition to this, Wilson also declined to order expedited settlement. Furthermore, he stated that union required posting a bond worth $250,000 that would protect any of the party that would have been harmed by the decision of the judge.
The president of the United Steelworkers International, Leo Gerard in a press conference championed the resolution of the union to go to the court. In the words of the president of the union, it would be wrong on the part of any type of organization if they ever underestimated the strength and depth of the union. He further reminded that their union is committed to offer protection to the members of their union especially the hardworking members.
However, it is interesting to note that Team Carriers informed the judge that Garten Trucking is not their successor that is reflected from the language of the contract. They further stated that Team Carriers is not selling their business to Garten. It is informed that they are agreed to enter the arbitration even though oppose the position of the union.
