South Bend workers lose jobs in wake of company closing

by Jeff Shafer

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Alvan Motor Freight closed its South Bend operations (WSBT Photo)

Alvan Motor Freight closed its South Bend operations (WSBT Photo)

By WSBT News1

SOUTH BEND -- Forty people are now out of work in South Bend after a long-time trucking company closed its doors. Alvan Motor Freight was based in Kalamazoo, but had a terminal in South Bend.

And over the weekend, the company stopped operations and said it is filing for bankruptcy. Some customers say the closing could also hurt them.

Brandon Cerecke helps run a family business outside of Bridgman, Michigan. The company does work on metal parts and relied on Alvan Motor Freight and its South Bend terminal to help get the parts to its customers quickly.

"When I heard that Alvan's done, I couldn't believe it," Cerecke said. "It was a shock. I mean my family's done business with Alvan as long as I've been alive. I remember when I was a kid at Ultra Seal in the playroom, my scribble sheets I'd draw on were Alvan letterhead."

As Alvan Motor Freight pulls its trucks off the region's highways, 525 people are losing their jobs at operations in 15 Midwest cities.

"A number of problems outside of our control have overwhelmed us to the point where we are left without a choice," Alvan president and CEO James Van Zeoren said in a statement.

Among those problems he pointed to are the high cost of diesel fuel, competition, fall out from the strike at American Axle, who was a major customer, and a weakening economy.

"It's a small snapshot of what is really going on in Southwest Michigan and Michiana," Cerecke said. Cerecke says he feels for the workers he's gotten to know as friends, and he'll try to make sure his own business isn't hurt too much as a result of the closing.

"It's not going to be easy," he said.

Alvan Motor Freight was a family run business founded in 1941 and also had operations in Fort Wayne and Indianapolis.

Sunday, Jul 6 at 11:57 AM Tom wrote ...

Not sure why this country feels that everyone owes them something. This company has been in business since '41. How hard of a decision do you think it was to close it's doors. Pretty hard, people need to wake up in this country. Fuel prices, food, cost of living all on the rise. Jevic Trans, one of the largest to date to close it's doors. Government intervention (repeal taxes) has to be the next step. Or more will follow. 2009, there will be new millioniares - watch!!

Wednesday, Jul 2 at 4:19 PM Brian wrote ...

Fred...another business lesson coming your way...The owners of businesses have an obligation to take care of their emoployees, by paying them their salaries, providing health care and most importantly a JOB. If the company doesn't make a profit, and is not sucessful then you are out of a job and you cannot feed your family. I can't spell this out any easier Fred. People have to face this reality....there are those that have it in this world and there are those who do not. It will never change.

Wednesday, Jul 2 at 3:54 PM Brian wrote ...

Fred....if the company doesn't make a profit...you will be out of a job! Businesses supply jobs! Giving tax breaks to companies is done to keep businesses alive and in business. The company and CEO's are obligated under SEC rules to make and show a profit to the investors and shareholders. If they don't, the business goes under and YOU no longer have a job! This is all common sense Fred, Business 101. The salary and any bonus is given by the shareholders and usually not cash, but stock options.

Wednesday, Jul 2 at 3:50 PM Brian wrote ...

Obviously Fred has never run a business himself and has no clue what goes on with a pubically traded enterprise. The "rich" business owners supply the jobs we have, therefore they can do what they want and set their own salary. You work for them and are at the mercy of their pay scale. Like I said earlier...you go to college, take the risk and start a business. Maybe then will you make the millions you want. Go to college and take Business 101. Maybe you won't look so stupid next time you write.

Tuesday, Jul 1 at 10:41 PM Fred wrote ...

People like Brian like try to justify and rationalize GREED by saying they have an obligation to shareholders. Right because they don't have an obligation to the employee. Look at what their intelligent business practices get them, wonder what shareholders think of no business. What a contradictory mentality.

Tuesday, Jul 1 at 10:41 PM Brian wrote ...

Lee....you're right about drilling in Anwar not making a drop of difference. The point I was making was Republicans and Bush get all the blame for this when it has been the democrats refusing to allow for drilling or exploration of oil. If they had allowed this many, many years ago our problems wouldn't be as severe today. We see bumper stickers saying "Democrats serve the people"....what a bunch of hogwash! Now they have the balls to blame the President and the Republicans. No integrity at all.

Tuesday, Jul 1 at 10:22 PM Susan wrote ...

To Kevin at 8:22... I am so glad to hear that!!!! Your pensions are safe!!!! Now we just need to get insurance companies to allow small businesses (where you might land in your next position) to pool together for group health insurance rates!

Tuesday, Jul 1 at 9:47 PM Brandon Cerecke wrote ...

Ultra Seal will truly miss the great service all of the Alvan employees delivered over the years. It is unfortunate that an overwhelming majority in our country have adopted a Wal-Mart mentality. Cheap, Fast, Easy and Cheap. It's time to take accountability for the daily economic decisions we make and think about how it affects the American worker, local businesses and everyone else we care about.

Tuesday, Jul 1 at 8:22 PM Kevin wrote ...

This is just a short shout out to Susan who wrote she thought that since the company filed bankrupcy, we would lose our pension and insurance. Susan,you are half right. we did lose our insurance, but I am still able to retire with my pension. Hope that sets the record straight.

Tuesday, Jul 1 at 11:59 AM ICM wrote ...

Now is not the time for the blame game, it's time for solutions! As a business owner I have seen a massive decline in business and not sure if I will be able to last to the end of the year. American Axle, well my son called this morning crying, the glass plant he works at is down to 3 work days, entire shifts sent home/told don't come in and as of last night was they where told to expect lay offs and possible plant closing. Here's a thought, BUY LOCAL FROM LOCALS AND KEEP OUR MONEY/JOBS @ HOME!

Tuesday, Jul 1 at 10:37 AM Lee wrote ...

Brian - if you think ANWAR will make a drop of a difference, you're wrong. The cost to get it will cut into the gain it produces - not to mention that it will still must be traded on the world market and face global supply and demand so the price will stay high. C'mon you know better.

Tuesday, Jul 1 at 9:34 AM J wrote ...

This country is full of greed. No one deseves millions in bonuses. The rich do not care about how the blue collar workers are scrapping their minial wage together to make ends meet as long as they get their tax breaks and big bonuses. Many CEOs of family business take over for a retired relative and even with school do not deserve millions in dollars of bonuses. If they would give up a little of their pay to raise the workers pay to meet cost of living, they would still be living good.

Tuesday, Jul 1 at 9:32 AM this one is for betty wrote ...

yes betty, you are real dumb unless you were asked to write a 63 word essay in one sentence including double negatives.

Tuesday, Jul 1 at 9:28 AM talk about an idiot wrote ...

cpenniger you're a moron. clinton pushed for NAFTA to come thru before he left office so he could get it signed. he realized in 2008 that it was a mistake because his wife was trying to run for president. Americans were smart enough to realize that one clinton was plenty in the white house. they both belong in the big house. they're crooks!

Tuesday, Jul 1 at 12:22 AM betty wrote ...

i must be real dumb because to me saying a place closes and the workers now got no jobs is like saying it rained the ground is now wet but everyone want to run train now so the truckers dont get none like they used to be able to just drop a load and hook up and go again i guess times change

Monday, Jun 30 at 11:08 PM Jeffrey wrote ...

"It's too bad the only people who really know how to run the country are too busy cutting hair and driving taxi cabs." -George Burns

Monday, Jun 30 at 10:33 PM Brian wrote ...

John...Just over two months ago there was a vote on the Senate floor to open up Anwar to drilling. Guess who defeated that measure? The democrats. Obama and Hilliary both voted "no" on that measure. The president has no control over the oil and the drilling. Quit blaming the president or the republicans. The democrats all voted no on that bill so they are the ones to blame. Now, two months later we have $4 gas and the democrats sure don't want you taking about it now.

Monday, Jun 30 at 9:47 PM Susan wrote ...

Kevin, you are probably right. But if they filed bankruptcy, your pension & insurance are gone. Look what happened to Dana Corp. employees.

Monday, Jun 30 at 9:30 PM John wrote ...

Hey Mimi, don't worry -- it's already happening. We've had a Republican prez for almost 8 years and Repub congress for 6. Wow -- heck of a job. Darn fine job. Got a lot done didn't they? Really worked on oil alot didn't they, oh, that's right -- they gave Big Oil tax breaks. Thanks Bushie! Can't wait for McBush to get in the White House.

Monday, Jun 30 at 9:15 PM Tim the teamster wrote ...

The good union workers at Alvan have made concessions and worked with the company for many years to keep this from happening , but it came anyway. Please don't blame the union or the company, they both have worked to keep it going.

Monday, Jun 30 at 9:01 PM Kevin wrote ...

After reading all these posts,I can see there are alot of armchair critics that have no clue what they are talking about. I worked for Alvan for the past 12 yrs. Been a Teamster for over 30 yrs. The closure of Alvan was not due to something the union did not do. It was due to high fuel prices,slow economy,and poor management. The union workers were making less than full union scale. With few exceptions, we were fine with that. All we wanted was to have our pensions and insurance left alone.

Monday, Jun 30 at 8:50 PM Mimi wrote ...

Not only are the unions bringing down business, but the Dem's are also responsible for not allowing the US to drill for oil off shore or in Alaska. Don't want to disrupt the Carribou. If a company can't make a profit they are going to go under. Thanks unions and brilliant democrats for making sure that is happening all over. Let's all vote Obama, so we can then all go broke.

Monday, Jun 30 at 8:07 PM Lee wrote ...

Actually Brian -- more republican than dems supported NAFTA. Seriously - you people that don't know what you are talking about, please, please stay home in November. Uneducated Republicans, heck, Repubs in general have done so much harm to this country its sickening.

Monday, Jun 30 at 7:50 PM cpenginner wrote ...

and once again how about those CEO'S making millions while the company fails and the pensions are cut to pay the CEO's so its just not NAFTA but is still a big part in it. your the one that make the company's work and what reward do you get it's not that bonus check the CEO GETS

Monday, Jun 30 at 7:45 PM cpenginner wrote ...

Wake up people it was the republicans that started NAFTA and billy boy just signed it as he left office as he was reluctant to do it from the start as he now realizes it was a mistake to do so. just remember the republicans are not any better than the democrats just different views which they all work against each other but as for the unions the Regan years broke that with the air traffic controllers strike so blame the republicans for the down falls of the unions

Monday, Jun 30 at 5:59 PM adam wrote ...

wow... blame the union,fuel prices, mexicans and lazy truck drivers. I guess everyone on here has all the answers. No need to figure out the true reason for their demise... oh yea, buy another toyota and youll see more of the same. hypocrites!

Monday, Jun 30 at 4:39 PM Brian wrote ...

Yes....lets talk about NAFTA!!! The democrats, whom the union loves, endorses and supports gave us NAFTA, which in turn sent millions of our jobs overseas, will once again endorse and support another democrat (Obama) who will do nothing to address those concerns. Unions are the downfall of American Manufacturing. I just wonder when America will wake up and realize that. This is why Right to Work is Right for Michigan and America. Vote "yes" on Right to Work laws in your state.

Monday, Jun 30 at 3:26 PM anonymous wrote ...

My dad is an Alvan driver who is now with out a job because of the lazy union mentality.The days of making big money and screwing off are over. As soon as everyone realizes that maybe things will start to change.

Monday, Jun 30 at 2:55 PM Lee wrote ...

Why are you confused? It's about Alvan and the impact to companies they serviced. It's ok to think a little.

Monday, Jun 30 at 2:09 PM Confused wrote ...

I'm confused. Is this article about Alvan Motor Freight going out of business, or is it about that Brandon Cerecke kid? Seems to be more about him.

Monday, Jun 30 at 12:40 PM Rob wrote ...

The teamsters at Alvan palyed a significant role in the closing, greed got the best of them, they played the system, excellent benefits, highest wages, least amount of work possible.

Monday, Jun 30 at 12:17 PM Anonymous wrote ...

WHAT DOES ILLEGALS HAVE TO DO WITH THIS ?

Monday, Jun 30 at 12:16 PM Ted wrote ...

SOME of you crack me up. You want that magical one thing to blame: union workers, hispanics, or whatever. Americans have the highest standard of living in the world - well, guess what, sooner or later you have to pay the bill for that - and the economy is reflecting it right now. What's going to happen when the bill for the war comes due?

Monday, Jun 30 at 11:57 AM concerned wrote ...

I too am concerned with the downfall of the economy. YES American Axle affected the company I work for too, but that doesnt mean they get all the blame. Look at the economy we have and look at all the people who sit on welfare, refuse to work, get disability when they arent disabled, etc. We have to make the best of what we have. I am a single mother of 2 and work hard, but I have to make the best of what I have. Argue for your weaknesses.... they are all yours!

Monday, Jun 30 at 10:53 AM Brian wrote ...

Brad.....tell me how the union helped protect the American Axle worker? They lost over half their income. You call that help? You need to get educated buddy!

Monday, Jun 30 at 10:52 AM Brian wrote ...

Unions are the downfall of American Manufacturing: All the unions do are take in millions from it's workers and do nothing to protect them. Just ask yourself....what did the union do for the American Axle worker? Nothing and not one of the Union reps lost a dime while the American Axle worker lost over half their income. I am a Alvan driver and employee who hates being forced to pay dues to a bunch of greedy union reps who will do nothing and have done nothing to help me or my colleagues.

Monday, Jun 30 at 10:51 AM anon wrote ...

I don't think the drivers were making full union scale.

Monday, Jun 30 at 10:47 AM Brian wrote ...

Unions are the downfall of American manufacturing. Lets get this straight. The owners of business are required to make a profit by the investors and shareholders. I'm sick and tired of hearing the excuses from the workers of the "greedy" CEO's making millions. You go to college, get educated, put the time and money into buying and running a business like American Axle and maybe you'll make millions too. The Unions do nothing for the worker. Get educated people.

Monday, Jun 30 at 10:45 AM Brad wrote ...

If they'd ship all the illegals out, there would be plenty of jobs to go around. And thanks Bill Clinton for NAFTA, he really screwed the US of A.

Monday, Jun 30 at 10:29 AM frog wrote ...

So what else is new? We are all losing our jobs...the people that are paying the highest taxes, working two, three maybe more jobs are the ones that are suffering. But, we have the tax rebate check and that will make up for everything. Everyone, go out, buy an SUV, a 72" tv, a boat, preferably a 24 footer, a new truck, meanwhile, we are paying to have "hispanics" in the area and supposed to be happy they are here. I don't agree or like unions either, but something has to be done....

Monday, Jun 30 at 10:05 AM J wrote ...

Why are other jobs being affected that have nothing to do with American Axle. It is because of the greed from oil prices being sky-high. Everything has to go up because oil is involved one way or another. The rich do not care about the people who are scraping money together just to buy groceries. If you read the article there were other factors in deciding to close not just the strike.

Monday, Jun 30 at 10:05 AM Anonymous wrote ...

Dan and Jim get a clue. The reason American Axle was on strike is because the high level management wanted to squeeze every thing they could out of the workers. The strike ended after the workers caved to the greedy executives, who greased their pockets to the tune of 8.5M or more.

Monday, Jun 30 at 9:42 AM Henry - South Bend. wrote ...

Dan & Jim, please help me understand this, American Axle isn't mentioned in this article, so what do they have to do with this, I am confuse, please explain. Also isn't it true that Alvan Drivers were paid Teamster union scale, so could of these drivers high wages be part of Alvan problems. I am looking forward to your explainations, because I am really confused.

Monday, Jun 30 at 8:58 AM Brad wrote ...

No unions help protect the worker. CEO's making big bucks are what hurt the company, as with all companies. Families all across America struggle with the budgets of their home, why should a business be any different. It's all about choices and decisions. Show me the earnings and other factual expenditures from the top down and I will show you why the company went under.

Monday, Jun 30 at 7:49 AM danger wrote ...

Unions-more dangerous to our economy than terrorists.

Monday, Jun 30 at 6:40 AM Ed wrote ...

Jim if you want to blame American Axle start with the CEO that just got a $8.5M bonus. This is a prime example of why you don't put all you eggs in one basket though. It further seems to be a sign of the times with high fuel prices and a bad economy. I feel for the people losing their jobs; I've been there myself.

Monday, Jun 30 at 6:31 AM Dan wrote ...

the workers at American Axle, like most Union workers were totally celf-centered, they have no concern about the others that their greed has hurt. They have affected many other companies and workers with their arrogance....way to go!!

Monday, Jun 30 at 1:13 AM JIM wrote ...

TO THE WORKERS AT AMERICAN AXLE.WAS IT WORTH TAKING DOWN 525 JOBS.ENJOY YOUR PAY CHECK.

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