Costly labor disputes with truck drivers have proved to be too much for one of California’s largest port trucking companies, which filed for bankruptcy in federal court on Monday.
Port Trucking Company On The Losing End Of Several Lawsuits And Employment Misclassification Claims
Premium Transportation Services Inc., also known as Total Transportation Services Inc. (TTSI), filed for Chapter 11 bankruptcy after coming out on the losing end of 11 employment misclassification claims from its truck drivers. TTSI has also lost 14 lawsuitsin recent years, so along damages and legal fees, the company lost around $7.5 million to employment misclassification disputes.
Mounting Debt Forces Bankruptcy Claim
The bankruptcy claim says that TTSI is around $26 million in debt.
The teamster-backed labor disputes hinge on the idea that TTSI’s drivers are employees and not independent contractors and should therefore enjoy employee benefits — overtime pay, worker’s compensation coverage, etc.
TTSI also blames its clients for pressuring them to lower prices for their drayage services.
Sources:
L.A. Times
The Wall Street Journal
The Long Beach Press-Telegram