Schuman union
talks strainedThe longtime company needs to
pare costs to aid in a possible sale
Schuman Carriage Co. is embroiled in a labor dispute with the International Longshore and Warehouse Union Local 142 as word of a possible sale is mentioned in a memorandum posted for bargaining unit members.
Schuman's two-part, immediate goal is to avoid reducing personnel and to make the departments profitable, according to the memo.
"Should we accomplish these two goals, it is the company's opinion that whoever may consider purchasing Schuman Carriage Company will accept the majority of the Union members," the memo says.
"Should the departments not perform and show a profit, it is also the company's opinion that whomever considers purchasing Schuman Carriage will not accept the union and would not rehire the 51 percent of the members required.
"Whether the bargaining unit accepts this plan or not, makes no difference on the price the company will be seeking for its assets," the memo continued.
When asked to confirm whether the company is for sale, the owner's son Richard Schuman said, "no comment."
No brokers have been retained to shop the business, nor is it being advertised. "We're not actively pursuing a buyer," Schuman said.
The more than 100-year-old, family-owned automobile dealership has floated two slates of contract proposals to its unionized service technicians, warehouse and parts staffers, delivery drivers and support personnel.
The first slate would permanently close the company's body shop department, eliminate utility positions, reduce service technicians and reduce the number of parts department personnel effective Feb. 1, involving a total of 25 bargaining unit employees and six nonunion workers.
A separate reduction plan will cover the new car, used car and accounting departments, according to the memo.
The other series of proposals for the union centers on a flat-rate system to pay service technicians per job. Workers are currently paid by the hour, with a 40-hour guarantee, said David Mori, ILWU Oahu Division director. Workers receive guaranteed pay even in slow periods, he said.
"Right now, the sentiment of the workers is that they feel that management is threatening their livelihood. They're pretty upset about it and I guess the gut reaction is to take 'em on," Mori said.
The union is preparing to ask the company to open its books for review.
"We're reviewing the company's proposal and when we get to the bargaining table it's going to come down to us agreeing to what they're proposing, or not agreeing," said Mori.
Richard Schuman, son of company Chairman Gustav E. "Dutch" Schuman, declined to detail the company's position with the union, or talk about a possible sale. "We will not do our negotiations in the news," Richard Schuman said.
Schuman would not say whether there had been sale negotiations within the past year, but knows of the rumors swirling within Hawaii's automotive industry.
"There's been a lot of talk, a lot of speculation, but we just squish the rumors because it does no good for the employees or the customers, everybody," he said.
Wholesale Motors Inc. President Joe Nicolai has also heard the rumors, including one that his company would buy Schuman Carriage.
"There haven't been any negotiations between us and Schuman Carriage," he said.
Schuman will meet with employees today to discuss the current situation. The union has a meeting next week and the next bargaining session will follow shortly thereafter, Mori said.