Ford drops auto hauler Jack Cooper after 40 years in business together

The contract was not expiring at that date, according to sources close to the company, but it did contain an “out” clause that allowed Ford to take the action it did.

“This notice from Ford was unexpected and constitutes an unforeseen business and operational emergency,” the memo to Jack Cooper employees at its Claycomo Road facility in Liberty, Missouri, said.

The Jan. 2 notice by Ford to Jack Cooper was described by the auto hauler as “the first notice Jack Cooper received that any of the work provided at [Liberty] would not continue.”

And then the words that no worker wants to hear: “You are hereby notified as an ‘affected employee’ that the position of employment you have held with Jack Cooper shall be terminated in connection with the closure of the facility, effective as of February 2, 2025.” The loss of employment, the memo said, “is expected to be permanent.”

The relationship between Ford and Jack Cooper was said to have lasted more than 40 years. 

Attempts to reach Ford (NYSE: F) for comment were unsuccessful by publication time.

According to sources close to Jack Cooper, Ford did not suggest it was dropping the auto hauler for performance reasons and the carrier had regularly met all its required performance standards under the terms of the contract.

The cancellation came without warning or explanation, leading to some speculation that the status of the Jack Cooper drivers as members of the Teamsters union is a key reason for the termination of the company’s contract with Ford.

Jack Cooper has approximately 2,500 employees. About 1,700 of them are members of the Teamsters.

The company’s unionized status has been subtly criticized in numerous statements by newly public company Proficient Auto Logistics (NASDAQ: PAL). PAL has regularly referred to itself as a nonunion hauler. It went public in May, but in the past three months its stock is down more than 37%.

An internal document obtained by FreightWaves said Worker Adjustment and Retraining Notification Act notices of pending layoffs have been listed for Jack Cooper employees at Avon Lake, Ohio; the Claycomo road facility in Liberty; Cottage Grove, Minnesota; Dearborn, Michigan; Louisville, Kentucky; and Wayne, Michigan.

Jack Cooper is once again a family-owned business after going through bankruptcy and hedge fund ownership. Its current executive chair, Sarah Amico, is from the family that owns the company, and her ownership stake makes it a certified Women-Owned Business Enterprise (WBE).

Ford has already lined up alternative haulers, according to sources, though much of the capacity is believed to be held by brokers who would be looking for independent owner-operators to haul Ford’s vehicles. Most of the work performed by Jack Cooper is undertaken by company drivers, with some brokered freight in the mix.

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