Over the past 40 years or so, Ford has leaned on the auto transport company known as Jack Cooper to move its vehicles around, serving as its second-largest customer behind only cross-town rival General Motors. However, somewhat shockingly, Jack Cooper sent an internal memo to its employees recently informing them that Ford has terminated its contract with the company, which will reportedly lead to some layoffs as well.
The memo – obtained by FreightWaves – says that “this notice from Ford was unexpected and constitutes an unforeseen business and operational emergency,” as well as “the first notice Jack Cooper received that any of the work provided at [Liberty] would not continue. You are hereby notified as an ‘affected employee’ that the position of employment you have held with Jack Cooper shall be terminated in connection with the closure of the facility, effective as of February 2nd, 2025.” The loss of employment, the memo said, “is expected to be permanent.”
It’s unclear why Ford made this particular decision, which is reportedly not due to performance issues, though some speculate it could have something to do with the fact that most Jack Cooper employees are part of the Teamsters union – allegations that The Blue Oval has denied. Ford has reportedly already lined up alternative haulers, and for now at least, isn’t willing to explain the reasoning behind this change. “We do not comment on our contracts or relationships with individual suppliers,” a Ford spokesperson said. “We manage supplier relationships in line with our sourcing strategy, designed to enable us to best serve our customers.”
“By taking steps to end its relationship with Jack Cooper, the Ford Motor Company has officially threatened the livelihoods of more than 1,400 Teamsters-represented carhaul workers and their families,” Teamsters General President Sean M. O’Brien said in a statement. “Ford, a once iconic American brand, wants to boost its own bottom line by walking away from a family-owned company and into the arms of second-rate third parties that will pay workers less money and far fewer benefits to haul Ford vehicles. The entire 1.3 million-member Teamsters Union stands absolutely opposed to this shameful and un-American decision.”
“The erosion of good-paying union jobs poses a serious threat to our entire economy. We have seen time and again that there are no winners when corporations sell out workers to the lowest bidder. Corporate executives refuse to look past the short-term, setting their sights on an extra bonus as they race to the bottom to ruin lives, hollow out communities, and decimate the middle class. It must stop. The Teamsters urge Ford in the strongest possible terms to reverse this decision. We are prepared to use the full force of the Teamsters Union to defend our members and protect honorable union jobs in America.”
Comments
Capitalism at work.
Well lets see.. Teamsters voted for Trump. Trump wants nothing to do with EV’s. Ford has invested BILLIONS into EV tech and batteries. Ford has a contract with USPS for EV vans. Gotta follow the bread crumbs. Ford could care less about the Haulers jobs, this is pay back for electing Trump. Just my take and I’m not a union fan. It was Jack Cooper who delivered our 2022 Super Duty too.
Entitled union mentality. Pay us more or you’re “un-American”. Has nothing to do with Trump’s election. Driver’s i used to deal with daily didn’t give a crap about customer service.
Your correct their fees are out of control, soon to be 2000 for delivery.
Mostly low brow work.
Agreed. Union mentality is a cancer to the US workforce. Unions aren’t all bad. But the untouchable mindset that most of them have nowadays, plus the “pay us more or else” attitude of their leadership will eventually capsize the balance. Yes, maybe Ford is selling to the lowest bidder, but that’s because the Unions have no qualms being the highest bidder and threatening strikes if you question anything.
What seany is really saying is We are losing union dues: money out of the Union thugs pockets.
Their fees are out of control for delivering cars and trucks. Most buyer pay now over 1500 soon will be closer to 2000, even if they drive the vehicles on mile from the train. Maybe Frod who has raised their prices outrageously for new mustangs want to pare down costs in other areas.
Jonny do you ever have anything nice to say?
I don’t believe the cars shipped to my dealer arrive via Jack Cooper trucks. But if the dealers that do get cars via Cooper have as much issue with carrier damage as we do, I can understand why the contract was terminated. Carrier damaged dealership vehicles are the #1 “customer” of our bodyshop. It’s terrible.
Ford nursed Jack Cooper along through the years while navigating the Allied Transport bankruptcy and merger of assets. Many contracts were written at higher than market rate for JCT. JCT supported Ford for a long time with timely damage free service, but there is a limit to what the blue oval can absorb.
As a former dealer in OK I experienced satisfactory service from Cooper after they replaced Auto Convoy back in the 80’s, We often got straight loads from KC which saved time for shipping. Sad news.