Teamsters stike continues; BNSF to haul Overnite freight

The Brotherhood of Locomotive Engineers continues to support the International Brotherhood of Teamsters in its strike against Union Pacific subsidiary Overnite Transportation Co.

The strike, now in its third month, has become more and more ugly. The latest salvo came on January 25 as Overnite announced that it is seeking at least $5.2 million from the Teamsters for costs, damage and losses stemming from the union's strike.

The lawsuit also accuses Teamsters president James P. Hoffa and other union leaders in a string of violent and illegal activities aimed at extorting a labor contract with Overnite.

President Hoffa denounced the lawsuit as a "smear campaign," citing recent reports of the company's financial woes as the reason for filing suit.

"These charges are baseless and unfounded," declared Hoffa. "Overnite has accrued a powerful resume of labor law violations and is attempting to take the spotlight off of their shoddy record. (We) will not back down from our unfair labor practices strike until company officials end their abuse of workers and bargain in good faith."

A week before the lawsuit was filed, Overnite reported losses in the fourth quarter of 1999 totaling more than $13 million - a reversal of nearly $30 million when compared to the $16 million profit in the fourth quarter of 1998. Moreover, the stock of Union Pacific Corp., Overnite's parent company, has continued to fall since the strike began on October 24, 1999.

The Teamsters and Overnite have been trying for several years to negotiate a contract for 22 terminals where the union represents Overnite workers. Both sides say pensions have been the major area of disagreement.

Police have said at least five shootings appear related to the strike. The most serious came Dec. 1, when William Wonder of Evansville, Ind., was shot in the stomach as he drove from the Memphis hub.

In spite of the heated strike, Teamster/Overnite contract negotiations were scheduled to resume on February 9 and 10 in Chicago, Ill. The Teamsters' unfair labor practice strike will continue during negotiations.

It was announced on February 11 that UP rival Burlington Northern Santa Fe had won a contract to carry Overnite shipments on its trains.

The Overnite-BNSF contract is viewed as a coup by BNSF and a sore spot by UP. Sources said the contract was not announced in part because Overnite did not want to embarrass its parent, and because it did not want to suggest that it was diverting freight from the highways, which might give rail unions a reason to support the Teamsters. ·

© 2000 Brotherhood of Locomotive Engineers