Jack Cooper Transport, a prominent car hauler, is winding down its operations after unsuccessful contract negotiations with major clients General Motors and Ford.
The big picture: This development will result in around 2,500 layoffs, as the nearly 100-year-old company loses its long-standing relationships with these automakers.
- GM ended its contract with Jack Cooper following failed talks that extended late into the night.
- Ford had already canceled its contract with Jack Cooper last month, leading to the closure of some facilities and job cuts.
- In light of these challenges, General Motors began using other trucking companies to handle vehicle shipments.
Contract details: Jack Cooper was seeking new terms from GM after losing Ford's business, aiming to secure its financial stability.
- GM didn't accept the proposals on the table and ceased all work with Jack Cooper, informed Detroit Free Press.
- The Teamsters Union, which represents a significant portion of Jack Cooper’s workforce, is actively working to preserve jobs within the industry.
What they're saying: "This is as bad as it gets, but we'll get through it," said Avral Thompson from Teamsters Local 89 about the ongoing crisis.
Jack Cooper's management stated they are willing to continue negotiations with GM, indicating a readiness to explore further possibilities to sustain operations.