Regional logistics and courier company Northeast Transportation Services LLC is planning to close its doors in Pawtucket. The closure will result in over 50 jobs being affected. The workforce includes employees represented by a union.
Northeast Transportation Services LLC to Lay Off 50+ Employees
Northeast Transportation Services LLC has filed a WARN notice with the state’s Department of Labor and Training. The notice alerts the Rhode Island state officials about the layoffs in compliance with the WARN Act. It gives the employees and the state advanced notice of the mass layoff, helping them transition through the change.
According to the notice, 52 employees working at Northeast Transportation Services LLC will be laid off. The union, Teamsters Local 251, represents the workers. The company will cease operations on May 9, 2026.
Reason Behind the Closure
The layoffs will take place as Northeast Transportation Services LLC leaves its Pawtucket location.
Another reason for the closure is the labor dispute that took place in 2022-2023. For several months, the workers of Northeast Transportation went on strike. The strike was due to low wages, high healthcare costs, and improper working conditions.
The strike resulted in a significant decline in business, and the company was almost shut down. However, a new contract was established with the union, prolonging its operations. This incident appears to have influenced the company’s plan to close now.
About the Company
Northeast Transportation Services LLC is a third-party contractor. It is located in Pawtucket, Rhode Island, and provides pickup and delivery services. The company employs local drivers who can handle last-mile operations in the area.
In 2023, the company faced a months-long strike from its workers. This incident resulted in Northeast Transportation filing a WARN notice. However, the union negotiated with the company, and the closure was rescinded.
The closure highlights the impact of the shifting business dynamics within the logistics industry. While it affects over 50 employees, it also reflects the challenges tied to contractor-based operations.
