Performance Transportation asks to temporarily cut Teamster wages

By Jennifer Lanning Drey

Portland, Ore., May 30 - Performance Transportation Services, Inc. requested court approval to implement a temporary 15% wage cut for local Teamster employees covered by its National Master Automobile Transporters Agreement, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of New York.

Performance said the wage cut is necessary because its debtor-in-possession facility expired on May 19, and the DIP lender has agreed to extend an additional $2.5 million in financing through July 31. The company said the amount will only satisfy its liquidity requirements if the temporary wage concessions are implemented.

The company wants to implement the wage cuts from June 4 through July 31 or the effective date of a new collective bargaining agreement with the Teamsters.

Performance said if the temporary wage cuts are allowed, the company will pursue a consensual modification of the agreement that will enable he company to reorganize as a going concern and preserve the jobs of the local Teamster employees.

"The survival of the business is at stake. The debtors must either obtain the interim wage reductions requested or they will be forced to liquidate," Performance said in the filing.

Performance Transportation Services is a Detroit-based transporter of new automobiles, sport utility vehicles and light trucks. Its Chapter 11 case number is 07-04746.

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