California nursing home ordered to recognize union and hire 50 employees who worked for the previous owner

The National Labor Relations Board this week adopted the recommendations of an Administrative Law Judge and ordered owners of the Yuba Skilled Nursing Center in Yuba City to hire 50 employees they unlawfully failed to hire after assuming operations of the center in September 2011. Employees at the home had been represented by the Service Employees International Union, United Healthcare WorkersWest, before it was bought by Nasaky, Inc. Under the National Labor Relations Act, new owners of a union facility are obligated to recognize and bargain with the existing union as a successor employer. However, the union alleged in charges with the NLRB that the new owners failed to hire the longtime employees in order to avoid that obligation. After an investigation, Regional Director Joseph F. Frankl agreed and issued a complaint. Following a two-day hearing, Administrative Law Judge Gerald Etchingham issued a decisionfinding all the allegations to be true and rejecting Nasaky’s explanations for why it declined to hire most of those who had worked for the previous employer. The employer did not file exceptions and the Board adopted the Judge’s decision as a final order this week. As a result of the Board’s order, Nasaky must immediately recognize and bargain with the union and commence the process of hiring the former employees and making them whole. The amount of backpay and interest is expected to approximate $1.25 million.

Piggly Wiggly supermarkets in Wisconsin agree to settle numerous NLRB cases and keep Sheboygan store open

In a series of settlements with the NLRB, a Wisconsin supermarket chain has agreed to solve all outstanding cases with the agency by signing collective bargaining agreements with the union representing its employees, reinstating discharged workers, providing about 500 employees a total of more than $570,000 in backpay, and keeping open a store that had been slated for closure. The settlements signed by Piggly Wiggly Midwest, LLC, based in Sheboygan, resolve cases involving six stores that began in 2009 and were in various stages of litigation. As a result, the parties agreed to seek dismissal of a case pending in the 7th Circuit Court of Appeals, and Piggly Wiggly agreed to drop its opposition to the enforcement of a Board order in another case. A third set of cases scheduled for trial were resolved by a formal agreement that requires approval by the Board in Washington. A fourth set of cases still under investigation were withdrawn. The employees, represented by UFCW Local 1473, agreed to accept a reduced amount in bargaining-related backpay to facilitate the employer’s agreement to keep the Sheboygan store open. The outcome was made possible by the hard work of NLRB Region 30 field examiner Amanda Bahnson, attorneys Angela Jaenke, Renée Medved and Andrew Gollin, Compliance Officer Richard Neuman, and Deputy Regional Attorney Percy Courseault, and by the diligence and good will of UFCW Local 1473 president John Eiden and Piggly Wiggly Midwest owner Paul Butera. Charges against the employer included bad faith bargaining, making unilateral changes to wages and working conditions, unlawful discharges, and an unlawful attempt to promote a decertification petition. In May, the NLRB Regional Office in Milwaukee obtained a federal court injunctionordering the Sheboygan supermarket to restore full-time status and health insurance to employees whose hours were reduced to part-time without bargaining. The settlements were reached by the parties on August 31; the formal agreement is pending approval by the Board. Click here for website version

Profit Soars 114 Percent at FedEx Freight

William B. Cassidy, Senior Editor | Sep 18, 2012 3:06PM GMT
The Journal of Commerce Online - News Story
LTL


LTL carrier profit hits $90 million, revenue, $1.4 billion, as shipment volume rises

FedEx Freight increased revenue 5 percent from a year ago to $1.4 billion as shipments rose 4 percent in the fiscal quarter that ended Aug. 30.

Profit soared 114 percent from a year ago to $90 million at the industrial freight arm of FedEx, which lowered its profit forecast for its new fiscal year.

That built on gains FedEx Freight made in the quarter that ended May 31, when its operating profit increased 93 percent year-over-year to $81 million.

The nation’s largest less-than-truckload carrier said higher demand for its economy service offering in all lengths of haul drew more freight to its LTL network.

FedEx Freight also benefited from cutting transit times on 6,000 lanes and a 6.9 percent general rate increase on non-contract freight that took effect July 9.

The carrier’s operating margin improved to 6.4 percent, giving the division a 93.6 operating ratio for the June-to-August quarter, the first of FedEx’s fiscal year.

The LTL operator increased its yield, a measure of pricing, 2 percent year-over-year. Yield increased at a slower rate than the previous two quarters, when it rose 4 and 6 percent, respectively.

Slower growing yield could point to a shift or an influx of freight to the division’s lower-priced economy service rather than its priority service.

FedEx Freight shrank and reorganized its LTL network last year to reflect priority and economy services offered in all lanes and all lengths of haul.

FedEx as a whole noted a shift to its deferred service offerings this summer as the global economy slowed, dampening international and U.S. express demand.

U.S. domestic average daily package volume at FedEx Express declined 5 percent, though higher rates boosted domestic revenue per package 2 percent.

FedEx Ground average daily package volume grew 5 percent, and revenue per package also was up 2 percent on higher rates, the company said Tuesday.


LTL carrier profit hits $90 million, revenue, $1.4 billion, as shipment volume rises

Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc.

Thanks to the Teamsters, CDL drivers can go to traffic school.

Good news.



AB 1888 (Gatto) would allow commercial drivers who get a ticket in their personal vehicle to attend traffic school every eigthteen months to eliminate a "point" from being placed their driving record.



This is a big deal because federal law, until recently, prevented commercial drivers from in any way masking citations or attending traffic school. The US DOT issued an advisory opinion allowing states to let commercial drivers who get a ticket in their private vehicle (not the commercial vehicle) to eliminate the point associated with the violation by attending traffic school. This could stop a driver from sliding into "negligent operators status," which could result in a license suspension and loss of employment.