Aunt Millies Bakeries has informed 35 transport drivers that it will contract with a New York company to handle its trucking.
Transervice Logistics Inc., of Lake Success, N.Y., will take over the work starting Jan. 24, Aunt Millies spokeswoman Melissa Dunning said Monday.
The drivers will keep their jobs but will be employed by Transervice. Theyll work under the contract Teamsters Local 414 negotiated with Fort Wayne-based Aunt Millies. That pact pays drivers more than $20 an hour plus benefits and runs until May 2011, Dunning said.
Aunt Millies drivers became worried in February when the company opened talks with Ryder System Inc. about taking over transport of its products. Aunt Millies was unable to come to terms with Ryder, Dunning said.
The contract with Transervice isnt intended to cut employees or pay, Dunning said. Its intended to allow the company to focus on baking. Aunt Millies employs about 1,700 throughout the Midwest.
We have decided that trucking is not our core business, Dunning said, citing liability, capital costs, maintenance and other related issues.
Transervice President Ed Flannigan also tried to calm drivers fears.
Transervice is predominantly a union company, he said. I go back with the Teamsters and evolved with them for over 40 years.
As the current contract with Aunt Millies transport drivers nears expiration, Flannigan wants to negotiate a deal that runs for five years. Thats the period of the typical contract Transervice strikes with unions, Flannigan said.
Aunt Millies and Transervice are privately held and dont disclose annual revenue.
Transervice employs about 1,700 in the United States, Flannigan said.
Officials with Teamsters Local 414 couldnt be reached Monday.
Flannigan said he has been in touch with leaders of the local and hopes to meet with the drivers next week.
About 220 Aunt Millies route-sales drivers, loaders and merchandisers belonging to Teamsters locals across southern Michigan went on strike Sept. 4 when contract negotiations broke down. They returned to work Sept. 13 when their union agreed to a new deal.
Dunning said Transervice is only taking over Aunt Millies transport business – hauling products over the road in truck rigs.
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