Back in early January, Ford executed a rather shocking move by terminating its contract with the transport company Jack Cooper, with which it had previously enjoyed a relationship with for roughly 40 years as its second-largest customer – a decision that it didn’t really give any sort of explanation for. Regardless, that move prompted Jack Cooper to try and renegotiate its contract with General Motors, its biggest customer, but those talks quickly broke down and led to Ford’s cross-town rival backing out as well. As one might expect, these moves proved to be a literal death knell for the transport company.
According to the Detroit Free Press, Jack Cooper has indeed “permanently shuttered” its operations after losing its two biggest customers, resulting in around 2,500 lost jobs. Interestingly, GM has agreed to fund the 97-year-old company’s winding down process, paying out things like accrued salaries, payroll, unused vacation time, and outstanding health care claims. The company’s assets are now owned by its lender, Cerberus, a private equity firm.
“As you have likely already heard, the Jack Cooper family of businesses will be discontinuing operations immediately,” the company’s letter of separation and Worker Adjustment Retraining Notification (WARN) reads. “Through no fault of your own, this unfortunately means that we will be terminating your employment with the company effective immediately. As of the date of this letter, your benefits coverage with Jack Cooper Investments, Inc. will also be terminated. As such, you nor any of your dependents will be eligible for dental, health and vision plans under the company’s health care plan.”
The Teamsters union representing the majority of Jack Cooper employees was understandably furious following Ford’s decision to back out of its contract with the transport company, and plans to work to help displaced workers find new employment. Additionally, a group of senators wrote a letter to Ford CEO Jim Farley demanding an explanation for the automaker’s decision to terminate its contract with Jack Cooper, but it’s unclear if the exec responded to that query.
Comments
Unions think they are guaranteed a job by because of their numbers and willingness to cripple an employer with strikes. Inevitably, they reach the point where they price themselves out of markets by cheaper labor.
You nailed it!
What’s this have to do w/Unions? You sound jealous actually. It’s purely a business move by GM & Ford Motor. Jack Cooper trucking wasn’t diversified obviously to its detriment.
The one question that I have had since first reading about this last month, is, how are they shipping vehicles now and into the future?
If it was mentioned in any of the articles, I missed that answer.
I sure don’t want to fly to the factory to take delivery of a new vehicle when that time comes. It will be awhile, I hope, that we need a new vehicle as we have a 2024 Ford Edge ST, 2021 Mustang Mach 1, 2014 F150 and 2006 Ford Mustang GT.
GM & Ford are using Independent car haulers to move vehicles.
Most are NON UNION. A good thing!
Other sources. Other trucking companies. Don’t worry one bit!
I gather Jack Cooper was handling the “last mile” (not literally a mile, though) of delivery as most cars go to a central distribution point by rail. Was this a pricing issue or is there some other hidden issue?
Maybe they weren’t shipping as quickly/ efficiently. Ford only deals w/ Q1 suppliers & other companies since C-19.
Interesting. Ford has been very clear that they are done playing the Union games, from the VEO on down. Last years negotiation was a farce with the Union’s striking Ford and GM plants nationwide curtailing production. I’m guessing Ford is saying, “You mess with the Bull, You get the Horns” and firing them from hauling duties. Clearly the cars have to be delivered so this is not a “no Need” elimination. I’d expect the nest UAW action is a lot more civil or look for Ford to with build more plants in southern non-union states or build cars elsewhere depending on how this Tariff thing shakes out.
There’s zero issue w/Ford Motor & UAW. They work together efficiently & to the betterment of Fords success. Facts.
Ford has most automotive operations of ANY automaker in US now. Most direct empower as well. They are in the “south”. KY & TN have huge operations! Blue Oval City is nearing completion in TN. Upper Midwest will always be Fords hub as its origins there!