The CHAIRMAN. Have you identified the document? The CHAIRMAN. You have identified it? What is it, please, sir? Mr. DENNIS. It is a letter over my signature, dated July 25, 1955, to all dry freight terminal managers, advising them of a meeting held with a representative of the Central States Drivers Council on July 24, 1955, regarding the cent and a half Trans-American rider on the Central States agreement, in which— The CHAIRMAN. I just wanted to identify it. It may be made exhibit No. 61. (Letter referred to was marked "Exhibit No. 61" for reference and may be found in the files of the select committee.) The CHAIRMAN. Any comment you wish to make about it, feel free to do so. Proceed. Mr. SHERIDAN. That bulletin indicates some dissatisfaction on the part of some drivers with the cent and a half proposal. In 1958, when the negotiations were again opened on the Central States contract, were there any indications at that time of dissatisfaction on the part of the members? Mr. GOTFREDSON. There may have been. Mr. SHERIDAN. Do you recall any significant ones? Mr. GOTFREDSON. I think the percentage was insignificant. Mr. SHERIDAN. Have you recently or in 1958 obtained from the members did you take a vote among the membership regarding the cent and a half agreement? Mr. GOTFREDSON. Yes, sir; we did. Mr. SHERIDAN. And you have turned the results of that vote over to us this morning? Mr. GOTFREDSON. Yes, sir; we did. Mr. SHERIDAN. Are you sure that the results as indicated in the material turned over to us were the results as they actually happened in each instance? (The witness conferred with his counsel.) Mr. GOTFREDSON. I only attended two of the meetings at which the drivers voted, one in St. Louis-that is, personally-and one in Detroit, and at both of those meetings when the vote was taken it was unanimous, unanimously in favor of the cent and a half. Mr. SHERIDAN. Mr. Dennis, did you attend the other meetings that were held? Mr. DENNIS. Yes, I did. Mr. SHERIDAN. Did you attend the meeting in Chicago? Mr. DENNIS. No, I did not. Mr. SHERIDAN. Did anyone from the company attend the meeting in Chicago? Mr. DENNIS. I am unable to answer that, whether we had a representative there or not, in Chicago. Mr. SHERIDAN. The vote in Chicago was 47 to 0 in favor of the cent-and-a-half arrangement? Mr. DENNIS. That is correct. That was our advice. Mr. SHERIDAN. But there was no company official at that meeting that you are aware of? Mr. DENNIS. I just told you that to my knowledge there was not. Mr. SHERIDAN. Who told you the results of that vote? Mr. DENNIS. Our terminal manager in Chicago. Mr. SHERIDAN. What is his name? Mr. DENNIS. At that time his name was Mr. Fixari, EdwardMr. SHERIDAN. F-i-x-a-r-i? Mr. DENNIS. Yes. Mr. SHERIDAN. Was he present when the vote was taken? Mr. SHERIDAN. Were you present at the vote in Cincinnati? Mr. DENNIS. Yes. Mr. SHERIDAN. You can certify to the vote in Cincinnati yourself, because you were there? Mr. DENNIS. Pardon? Mr. SHERIDAN. You can attest to the vote in Cincinnati yourself? Mr. DENNIS. Yes, I can. Mr. SHERIDAN. What was the result of that vote? Do you recall? (The witness conferred with his counsel.) Mr. DENNIS. May I see the list on Cincinnati, the one you are asking me about? Mr. KENNEDY. Maybe we can have them all made an exhibit for reference. These are the documents that were presented by the company in connection with the vote taken on the cent and a half, about which we will have more testimony. The CHAIRMAN. I present you here in bulk a number of documents relating to this alleged vote that was taken on the cent and a half that is involved in this negotiation. I believe these documents came from the company file. I present them to you and ask you to examine them and state if you can identify them. (The documents were handed to the witness.) The CHAIRMAN. I believe they are documents that you turned over to the staff of the committee. Mr. DENNIS. Yes; that is correct. The CHAIRMAN. They may be made exhibit No. 62 in bulk. (Documents referred to were marked "Exhibit No. 62" for reference and may be found in the files of the select committee.) The CHAIRMAN. Are there any questions about them? Mr. SHERIDAN. Mr. Dennis, would you look at the Cincinnati ballot and tell us what the results of that were? Mr. DENNIS. As I recall, there were two meetings held in Cincinnati. Mr. SHERIDAN. What was the date of the first meeting? Mr. DENNIS. One in March 23, 1958, and the second on June 1, 1958. As I recall, at the first meeting held in Cincinnati, it so happened there was a terrific snowstorm on the Pennsylvania Turnpike and a considerable portion of our equipment was held up in the snowdrifts for a period of 24 to 48 hours, with the result that many of the drivers involved and interested in this meeting were unable to attend. Mr. SHERIDAN. Did you take a vote at the meeting anyway? Mr. SHERIDAN. Was it in favor or against the cent and a half? Mr. DENNIS. Which was against the cent and a half, but it was unfavorable. Mr. SHERIDAN. So you had a second vote? Mr. DENNIS. No, it was unfavorable due to the fact that a true representation of the men was not there. Some of them wrote letters to our company, and others sent in telegrams asking for another meeting. Mr. SHERIDAN. Do you have any record of those letters and telegrams other than the one that is there? Mr. DENNIS. They are in here. Mr. SHERIDAN. There is only one there, isn't there, from Mr. Cisco? Mr. DENNIS. Here is a letter and a telegram in here, and Mr. Young Mr. SHERIDAN. Is there more than one letter from a member protesting? Mr. DENNIS. Here is a telegram signed by our Mr. Muller. Mr. SHERIDAN. Who is Mr. Muller? Mr. DENNIS. Mr. Muller is our Cincinnati terminal manager. Mr. SHERIDAN. But are there any letters? Mr. DENNIS. Advising that Raymond Burns would like another meeting. Here is a telegram by a William Parker for his proxy vote in favor of the cent and a half. Mr. SHERIDAN. But that was counted, was it not? Mr. DENNIS. Here is a letter from a driver, William Risco, saying— It is my opinion that because all of the drivers did not get to attend that meeting, the vote taken did not represent the feeling of most of the drivers working out of Cincinnati. I certainly feel that the 15 or 16 who were not there would vote to retain the 12 cents fringe benefit we are now receiving, at least this is the opinion of the absent drivers to whom I have talked. If possible could you call another meeting and make it so we can be there to represent ourselves. Mr. SHERIDAN. But there is actually only one letter from one driver protesting; is that not true? Mr. DENNIS. That is correct. Mr. SHERIDAN. Now, Mr. Gotfredson Mr. DENNIS. You didn't allow me to finish. Mr. SHERIDAN. I am sorry, Mr. Dennis. Mr. DENNIS. We held the other meeting on June 1, at which time there was a representative group of drivers in attendance at the meeting in Cincinnati, and the majority voted in favor of the cent and a half rider. Mr. SHERIDAN. What was the vote on that? Mr. DENNIS. Eighteen to thirteen. Mr. SHERIDAN. Eighteen to thirteen? Mr. DENNIS. That is right. Mr. SHERIDAN. Now, Mr. Dennis, is it true that in order to get a job as a driver at Trans-American today, you have to sign an individual agreement agreeing to the cent and a half agreement? Mr. DENNIS. Yes, it is. Mr. SHERIDAN. Is it also true that you are putting on a large number of new Mack trucks as your company-owned equipment and that in order to get one of these new Mack trucks you have to sign an agreement agreeing to the cent and a half provision? Mr. DENNIS. Well, the reason for that Mr. SHERIDAN. Is that true, Mr. Dennis? Mr. DENNIS. The reason for that Mr. SHERIDAN. Is that true? Mr. DENNIS. Not the way you stated it, no. Mr. SHERIDAN. If you are a company driver, driving an old, or not a Mack truck, and you are putting on new Mack trucks, and if you want to get one of these new Mack trucks, is it not true that you have to sign one of these cent and a half agreements? Mr. DENNIS. You are not stating the full facts. Mr. SHERIDAN. Isn't that a part of the provision whereby a driver will get one of the trucks? Mr. DENNIS. The way you state it, I would say "No." Mr. SHERIDAN. What is the situation? Mr. DENNIS. The procedure is this: A new Mack truck costs our company $15,000. We cannot economically place a piece of equipment of that value on a short run where it will stand idle one-half to twothirds of the time. Mr. KENNEDY. Could you ask the question and then we can move on. He didn't ask you why, and he asked you if you did. You are giving us the reason for something. He asked you if you did. Mr. DENNIS. Well, he is not asking a question. Mr. SHERIDAN. You are putting on a large number of Mack trucks, and if a company driver wants one of these Mack trucks he has to sign one of these cent and a half agreements! Mr. DENNIS. That is true. Mr. SHERIDAN. Now, also, in taking one of these Mack trucks, and he is a company driver, one of the prime things that a company driver is interested in is good runs, and in this February 13 meeting with Mr. Hoffa back in 1955, Mr. Hoffa was quite definite and Mr. Gotfredson backed him up in the assertion that no matter what happened the drivers would never have to give up their good runs. What is in effect happening now with the new Mack trucks, not only are the drivers required to sign the cent and a half agreement, but are being required to give up the good runs, and they are becoming what is known in the trucking industry as "wildcatters." Mr. Hoffa said at that meeting that these drivers would never become "wildcatters." Now, isn't that true? Mr. DENNIS. Well, they seem to like their job, and they are running miles, and making good wages. Mr. SHERIDAN. I would like to run through with Mr. Gotfredson just a few other areas where the company is not living up to the contract. Now, in your agreements with your owner-operators, Mr. Gotfredson, you do not have a lease directly with your owner-operator but you have a lease through the Highway Vehicles Corp., which is owned entirely by Trans-American; is that correct? Mr. GOTFREDSON. That is correct. Mr. SHERIDAN. Now, there are four articles in the Contral States contract, and I will just quote the articles. Mr. GOTFREDSON. That is subject to some explanation. Mr. SHERIDAN. In effect, you are paying your owner-operatorsMr. GOTFREDSON. You are painting a picture which give the committee the wrong impression. Mr. SHERIDAN. Let me state this fact and see where it is wrong. You are paying your owner-operator drivers for the rental of their equipment a 121/2-cent flat rate, and the Central States contract provides you will pay anywhere from 104 to 142 cents, depending on the tonnage, starting at 23,000 pounds. Now, by leasing it through Highway Vehicle Co., you in effect are saying that you are not leasing equipment from the owner-operator but through a leasing from Highway Vehicles, and this did not come under the provisions of the contract; is that not true? Mr. GOTFREDSON. Those vehicles do not come under the provision of the contract. Mr. SHERIDAN. But Highway Vehicles is a wholly owned subsidiary of Trans-American. Mr. GOTFREDSON. That is correct, but they have no contract with the union. Mr. SHERIDAN. Article 1, section 4, of the contract provides: It is understood by this provision that the parties hereto shall not use any leasing device to a third party to evade this contract. Now, has the union ever complained about this leasing arrange ment? Mr. GOTFREDSON. Not to my recollection. Mr. SHERIDAN. Have you furnished the union copies of your lease as provided in the contract? Mr. GOTFREDSON. So far as I know, the lease is no secret. Mr. SHERIDAN. Your personnel manager advised me that you did not furnish those leases to the union. The contract specifically provides that you should. Article 6, section 2, states that: The employer agrees not to enter into any agreement or contract with his employees individually or collectively which would in any way conflict with the terms of the provisions of this agreement. Now, the 122 cents is in conflict with the terms of the agreement. Mr. GOTFREDSON. I do not interpret that as meaning that TransAmerican is not permitted to lease from a strictly leasing company, which Highway Vehicles, Inc., is. Mr. SHERIDAN. Now, you pay your owner-operators for deadheading, and you pay them 75 percent for the first 50 miles; is that correct? Mr. GOTFREDSON. That is not correct. Mr. SHERIDAN. What do you pay them for the rental of your equipment? I know you pay them full mileage for wages. Mr. GOTFREDSON. I believe I explained this to you at length last evening. Mr. SHERIDAN. I know there is a reason for all of these things, Mr. Gotfredson, but the fact remains that in each one of these instances although there may be a reason why you are doing these things, what you are doing is in violation of the contract. Mr. GOTFREDSON. Anything applying to equipment does not come under the contract, and therefore there can be no violation. Mr. SHERIDAN. Certainly. But there are several provisions and several articles in the contract devoted solely to the subject of owneroperators, which is what we are dealing with here now. Now, the fact is that you are leasing through this Highway Vehicles Corp., with the equipment still the property of the owner. |