Teamsters approve contract

By Staff -- Logistics Management, 5/1/1998

Shippers can set aside one of their worst fears. By a decisive majority, the International Brotherhood of Teamsters has approved a five-year contract with four national LTL carriers. This new National Master Freight Agreement will prevent another Teamsters strike like the month-long ordeal that crippled unionized carriers in 1994.

The Teamsters leadership was pleased with the negotiation process. "Our members put pressure on management to win significant gains without a strike," says Richard Nelson, director of the Teamsters National Freight Division.

Carriers also are happy with the contract. Timothy P. Lynch, president and CEO of the Motor Freight Carriers Association, which represents unionized LTL carriers, says, "We're ecstatic about the vote. Now, with a five-year agreement, we're ready to move on and strengthen this portion of the trucking industry."

An early settlement was critical to the carriers, who feared shippers would abandon them for non-union competitors if contract talks neared the deadline. The agreement was reached in February, but the vote itself took several weeks.

The contract was approved by a 57,769 to 21,735 vote. It provides better wages, pensions, and job security for workers at Yellow Freight System, Roadway Express, Consolidated Freightways, and ABF Freight System. The top hourly rate will rise from $18.46 to $19.86. Additional benefits include higher employer pension-fund contributions to match those at United Parcel Service. The contract requires carriers to give hiring preference to workers who have been laid off from another unionized carrier.

Some regional carriers that were not part of the national negotiations have signed "me too" contracts with the Teamsters. One exception is USF Red Star, which operates in the highly competitive Northeast. That carrier is asking for wage cuts so it can compete with non-union carriers and Preston Trucking, which pays 8.9 percent below the National Master Freight Agreement.

Union members also approved 20 of the 26 supplemental agreements, which are negotiated by local bargaining committees. Carriers will continue to negotiate where the supplements were not approved. Lynch says, "We have a few more [issues] to discuss with the Teamsters and individual locals, but there is no chance of any work stoppage or disruption of service."