Friday, March 04, 2011

Road To Mexico Opens Wide

The prospect of a new U.S.-Mexico trucking accord is nothing new to loyal followers of Alfidi Capital (all three of them).  The preliminary agreement is ready, sort of.  U.S. negotiators need to iron out a few details that can irk some members of Congress' transportation-related committees.  The final deal will be ready for legislation once the relevant industry players have made appropriate campaign contributions. 

Business groups are celebrating too early.  Union labor can still sabotage the deal by making impossible demands that may find an audience in Washington.  The Teamsters in particular are up in arms at the possibility that Mexican drivers will work longer and harder for a fair wage than their union brethren ever will.  They didn't get the message that trucking firms hurt by the high cost of fuel need any lever they can find to stay competitive.  Teamsters are better off blaming their woes on Middle Eastern unrest than on cross-border competition closer to home. 

Full disclosure:  No position in trucking stocks at this time.