The Penske Empire-Not Just Cars and Trucks-
Helping the Indianapolis Star Violate Civil Rights and Union Contract
Indianapolis, Indiana
When you think of Indianapolis, you generally think of racing, pit crews, media advertising, and all the things that have made Indianapolis the “Racing Capital of the World.” A name synonymous with racing is Penske, but there is another branch of the Penske Empire that does not attract as much publicity. Is it by design, perhaps? Penske is also in the business of Proxy Employment.
Penske has been hired by Gannet Company, the owner of The Indianapolis Star, to eliminate jobs and violate civil rights and union contracts, by taking on the delivery of the Star newspaper. This in itself is not bad business practice, but what has taken place since this relationship has the employees and union workers taking a closer look.
It seems that Penske is now in the business of “Proxy Employment”. A large company hires another company to do its “grunt” work for them, so that liability is passed onto someone else for any laws that might be broken and before they ever have to pay retirement benefits. Why? The profits from a relationship like this can be huge and the risk of being caught? Minimal. After all, a company like Gannett Company controls nearly 100% of media in the Midwest, and virtually no law firms will help the blue collar workers.
There is proof that a large number of drivers for the Star, making good money, nearing retirement and members of the local union, were asked to transfer working to a new company, because, as they were told, “everything will remain the same”. Now, it seems, that shortly after the thirty (30) drivers are settled into the new company (Penske), the old company (The Indianapolis Star), suggests that Penske should cut pay, hours worked, insurance benefits, and reduce the work force, etc. This instruction was given by picking up the phone and giving orders to their contractor, Penske. Penske does just that….cuts pay, reduces insurance benefits, and reduces the delivery work force to keep The Star contract. Before, in this situation, drivers had a union contract which would allow some form of protection against companies like Gannett, the parent company of The Indianapolis Star, but now, their new “employer”
Unfortunately, the cycle continues. Penske has been making money from the drivers by seemingly over-charging The Indianapolis Star, for doing less work, and offering fewer benefits to its employees. Because of this, the Star has hired yet a new company, Hood Trucking, to take over the deliveries from Penske. A select few of those ‘ole Indianapolis Star drivers were ‘invited’ to transfer to Hood. Hood Trucking will be continuing the cycle of cutting hours and paying fewer and fewer benefits. These employees are the same drivers that have been doing the job for past 30 years. WHO IS OUR BOSS NOW?
There are very strict IRS guidelines that determine whether or not a company is a private contractor or an employee. Many companies try to get around paying benefits to employees by calling themselves private contractors, agents, customers, etc. According to the guidelines, when an employer tells the employees how much they make, when to show up for work each day, and what equipment they have to use to do their job, they are considered the employer. But what happens when two or more companies are working together to manage the efforts of a small group? Are their laws to protect individuals against this type of “Proxy Employment”? It seems that there should be. We live in an era when the letter of the law is followed every day. In this particular case it seems that two, three or even four companies are totally ignoring contracts and employee civil rights, to include but not be limited to age and sexual discrimination. Who is there to protect the working class of America?
Corporate greed is said to be what has caused the current economic depression that our country is in today. Sub-prime lending practices, big oil greed, companies like Enron and ING, continue to run ponzi schemes bilking the average American out of his or her hard earned wages. These corporate games must stop! Instead of sitting back and watching, we need our lobbyist to start lobbying for the average American worker. This Country is supposed to be “by the people, for the people.” Not “by corporations and government, for corporations and government” as is in this case: The Indianapolis Star Employees v.s. Gannett, Penske and most recently, Hood Trucking.
To make the necessary changes, it is extremely important for the American working class to share our concern. Please contact your local law maker’s office today by going to www.indy.gov to express your dissatisfaction with the labor laws in place. Also, please contact Penske directly at (800) 848-3136; www.gopenske.com to share your concerns over business practices and corporate ethics.
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Note: Penske Businesses include: Penske Racing, Penske Truck Leasing, Penske Automotive Group, Davco, QEK Global Solutions, Truck Lite, and VM Motori.
KR/ for BC
