Investor Alert: Update – Potential Issues with Toll’s US Expansion (12/13/11)
January 18, 2012
Attention Toll Group Investors and Analysts:
Please find the following update regarding the ongoing mismanagement of Toll Group’s U.S. operations in the Port of L.A.
You may recall that in late October, 26 Toll drivers –representing a third of the Los Angeles-based work force – were summarily let go from their jobs. Management had blamed this action on a sudden “seasonal” downturn in business during what should be the busiest time of the year. The suspicious timing, which coincided with worker protests against poor working conditions, suggested that the company is more interested in waging war against their workers’ right to organize than in providing excellent service to their customers during the busy Christmas season. Management’s actions prompted charges to be filed against the company with the National Labor Relations Board; more protests at the port; and targeted actions at Toll’s key retail customers during the lead up to the holiday shopping season.
The company has since backtracked somewhat, hiring back 9 of the fired workers on December 1. Incredibly, management continues to insist that “seasonal” volume changes are to blame for these dramatic adjustments. More likely, management is prioritizing retaliation against workers above good business practices, a particularly damaging attitude to take during the busiest time of the year.
Below and attached please find news reports about the ongoing conflict at Toll Group’s LA operations. We have included below an article from the Australasian Transport News before the nine drivers were rehired, along with one from the same source after the rehiring. Additionally, we have attached a piece from La Opinion in LA, and an in-depth report from the December issue of Australasian Transport News Magazine.
If you would like any additional information, please do not hesitate to contact me directly.
Carin Zelenko, Director
Capital Strategies Department
International Brotherhood of Teamsters
25 Louisiana Ave., NW
Washington, DC 20001