Elite prepares to go to work at AWG

As talks continued between Associated Wholesale Grocers and the Teamsters union, Elite Logistics was preparing for takeover of the AWG warehouse.

The company is sending in a transition team, consisting of experienced managers from other warehouse operations in Elite's parent company, Tibbett & Britten, said Martin Street, senior vice president of the western region for Montreal-based Tibbett & Britten.

"Some are coming in this week; some next week, but they'll be looking around and trying to understand the pay systems, the wages, the process for running the warehouse," Street said March 22.

AWG announced Feb. 1 its plans to outsource its warehouse and trucking operations. Elite has been selected to take over the warehouse, while Refrigerated Transport Express will take over trucking. RTX plans to hire contract drivers who will own their own trucks. As of March 23, talks between the Teamsters and Associated had failed to lead to a contract.

As for training the workers Elite will hire to run the warehouse, Street said the company hopes to retain the majority of the 460 workers there now, who are experienced and would need little training.

Associated Wholesale Grocers has said it will outsource its warehouse and trucking operations effective April 2 if it fails to negotiate a contract with the Teamsters, which now represents 204 drivers, about 360 warehouse employees, 60 casual employees and about 33 maintenance workers, said Jim Kabell, business manager of the Teamsters Local 245. Talks were going on March 22 and 23 and were to resume March 28 and continue throughout that week, Kabell said.

March 22, Associated issued a statement saying that the union has yet to produce a written comprehensive proposal.

"We want a contract with the union, and we are committed to negotiate 24 hours a day, seven days a week. Despite six meetings since Feb. 1, 2000, not one single proposal has been written and submitted by the union to the company," said Robert Baker, AWG's lead negotiator, in the release.

Kabell said despite its assertions, the company has not been available around the clock.

"We'll be here as long as it takes. We are not working with a deadline. Our goal is protecting the lives that are there and preserving the jobs that are there," Kabell said.

Associated has said it will save $43 million by outsourcing. Kabell said the majority of that savings will come from the trucking operation. Tim Bellanti, AWG's vice president of merchandising, declined to break the $43 million number down, but said the trucking portion of the savings was sizeable.

Bellanti also reiterated the company's earlier position that outsourcing is only one option; AWG wants to negotiate a contract with the Teamsters, he said.

The Teamsters presented a compensation plan model another local (Local 955 from Kansas City) provided to AWG during negotiations the week of March 13. Bellanti said the company was analyzing that contract as it would pertain to the Springfield operation. The proposal pays truckers both on an hourly rate and per miles driven: mileage is paid while the trucker is on the road, and hourly wages are paid during delivery, Kabell said.

"We are willing to consider different types of pay than hourly. We're here to protect these union jobs, and we'll discuss options with the company for as long as it takes," Kabell said.

Ron Petrikin, an attorney for Refrigerated Transport Express, the company set to provide trucking operations for AWG, said his company is ready to take over April 2 and does not expect the union's proposal, whatever it may ultimately be, to garner greater savings for the company than that of RTX.

Street is unsure of what will happen April 2, and he said that the agreement his company has with AWG says the company will take over on that date.

"Our contract specifically says we take over April 2 subject to no agreement between the Teamsters and AWG. Right now we're preparing to take over on that day," Street said.

The Teamsters have agreements with Tibbett & Britten companies in other areas of the country, Kabell said, but RTX uses only contract drivers.

Street said his company has continued to accept applications from AWG warehouse workers. Elite held a job fair March 18 where Teamsters demonstrated and police and security guards were on hand.

"About 300 people went through the process there. ... It was intimidating for some; there was quite a police presence there. It was all very peaceful, but some people were put off by it," Street said.

Applicants were also put off by a background check Elite was performing that included a criminal background check and credit history. The company did not intend to use the credit information, Street said, but it was part of the information-gathering process.

The company had sent a letter to applicants saying it did not intend to use the credit information, hoping that those who did not agree to the background check on that basis would then acquiesce. If those applicants, many of whom were current AWG employees, would sign off on the background check, Street said that would give the company the majority of the 450 applicants it needs to run the warehouse.