AFL-CIO to Help Fund Overnite Strike

In a move that could escalate an acrimonious labor dispute involving thousands of truckers nationwide, the AFL-CIO will hand over $500,000 to the International Brotherhood of Teamsters to fund its campaign at Overnite Transportation Co.

The Teamsters have worked for four years to organize drivers at the Richmond, Va.-based company, a subsidiary of Union Pacific Corp. and the nation’s sixth-largest “less-than-truckload” shipper.

Teamsters locals are on strike at dozens of Overnite terminals, although many drivers routinely cross the picket lines, causing some to refer to the Overnite strategy as “a strike without strikers.” There have been incidents of violence, including the shooting of an Overnite driver in Memphis, Tenn., but Teamsters officials say the strike has been peaceful and the shooting not clearly linked to the strike.

The union has won representation at 37 of Overnite’s 166 terminals. Some election results have been challenged by the company at the National Labor Relations Board. The Los Angeles terminal is not represented by the union, but other Teamsters members staff a 24-hour picket line at the facility.

Both sides have filed hundreds of charges of unfair practices with the NLRB, most of which have been dismissed. In November, however, the board ordered Overnite to recognize the union at four terminals, citing “numerous . . . serious and unfair labor practices at each terminal.”

The company is appealing the ruling.

Teamsters spokesman David Cameron said Overnite has spent millions of dollars to fight the union, far more than it would cost to settle a contract. “There’s a union animus here that defies logic,” he said.

But Ira Rosenfeld, communications director for Overnite, said negotiations have stalled over control of pension funds. “The Teamsters want to put the company’s contributions in its central states plan, but we’re leery of putting our employee’s money there,” he said.

In announcing the $500,000 contribution Tuesday, AFL-CIO President John J. Sweeney said, “The entire union movement is committed to escalating our support and standing with Overnite employees for as long as it takes.”

Teamsters President James Hoffa said the money will fund 30 additional organizers, radio and television ads, a legal team and lobbying efforts.

About 600 striking drivers are receiving $100 a week in Teamsters benefits, most of which is coming from their locals and area labor councils.