GENERAL Motors has broken its silence after abruptly ending its deal with another company.
The company, who is the largest customer of Jack Cooper, the largest female-owned, union-affiliated vehicle logistics company in the U.S., has blamed the latter for the breakdown.
“We can confirm that Jack Cooper Transport management has informed us of their plans to unilaterally stop services to GM, effective immediately,” a statement by General Motors said.
“In light of this material breach of their agreement and the ongoing and timely needs of GM’s business, we have no choice but to implement contingency plans with other providers.
“We do not anticipate any further disruptions to the delivery of our vehicles.”
However, Jack Cooper fired back and blamed GM for the axed deal.
“General Motors informed Jack Cooper that it would pull all business with Jack Cooper, rejecting all proposals that were then on the table to continue working together,” a statement read.
But to emphasize that the relationship is not permanently ended, the statement also said the auto hauler “remains ready, willing and able to negotiate with General Motors regarding a continued business relationship.”
It comes just days after Ford was ordered to reveal why a decades-long contract was axed after it led to hundreds of job losses.
Ford Motor Co. CEO Jim Farley is being asked by two US senators why the 40-year-long contract with Jack Cooper was scrapped.
Republican Senators Roger Marshall of Kansas and Josh Hawley of Missouri raised concerns over the aftermath of the decision.
In a letter, they wrote: “This abrupt decision threatens the livelihoods of nearly 2,000 dedicated union workers and their families, casting a dark shadow over Ford’s claimed commitment to ‘serving all of our stakeholder groups.'”
The letter is specifically in reaction to the 400 job losses in Kansas City and Marshall and Hawley are insisting that Ford will carry out all legal obligations included in the agreement.
It continues: “We expect Ford to address this matter with the seriousness it warrants and provide a detailed explanation for its actions, not only to the affected workers but also to their families and communities who are now burdened with uncertainty and hardship.
“We request, at a minimum, that you confirm Ford Motor Company intends to fulfill its legal obligations with respect to termination costs, pursuant to all applicable laws, resulting from Ford’s termination of its Jack Cooper contract.”
The colossal contract between Ford and car-transportation company Jack Cooper was cancelled on January 8, the Detroit Free Press reports.
As Jack Cooper’s second biggest client, after General Motors, the fallout from the loss of Ford left hundreds of jobs as risk.
It was described as an “existential crisis” for the company and Jack Copper was supposedly blindsided by the move.
The contract didn’t have a termination date but did have a break clause which Ford activated ahead of time.
Sources have said Ford has not yet explained the reasoning behind it and Jack Cooper has been forced to make significant internal changes to adapt to the catastrophe.
Some 400 staff members were laid off in Missouri, operations in Wayne, Michigan, have been permanently closed, and the Teamsters union is up in arms.
The branch in Wayne let 89 workers go early this month, of which 75 were union jobs.
Staff members at a facility in Dearborn have been plunged into job insecurity as further cuts are expected there as well.
The Republican Senators have demanded that Ford respond to their letter by February 11 with “your explanation for suddenly terminating such a longstanding partnership.”
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