USF shutters Red Star subsidiary

USF Corp. has closed its Red Star LTL subsidiary, citing revenue losses as a result of a Teamsters strike initiated last May when 15 office workers demanded union representation. The strike was honored by 1,500 USF Red Star drivers and dockworkers affiliated with the Teamsters. In this economic environment, where just-in-time inventory is the norm, not the exception, any irregularity in transportation

USF Corp. has closed its Red Star LTL subsidiary, citing revenue losses as a result of a Teamsters strike initiated last May when 15 office workers demanded union representation. The strike was honored by 1,500 USF Red Star drivers and dockworkers affiliated with the Teamsters.

“In this economic environment, where just-in-time inventory is the norm, not the exception, any irregularity in transportation puts all Red Star customers at risk,” said Richard P. DiStasio, USF Corp. chairman, president & CEO. “As a result we have lost customers and revenues. Realistically, we know many of those customers are gone forever.”

Satish Jindel, S.J. Consulting Group, pointed out that the timing of the strike was “not good,” since the Northeastern LTL had been struggling to turn a profit.

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