Subscribe to our free, weekly email newsletter!

ABF, Teamsters reach contract extension through October 29

By Staff
October 01, 2013

ABF Freight System, the sixth-largest less-than-truckload (LTL) carrier in the country, said yesterday that it has reached another contract extension with the International Brotherhood of Teamsters through October 29, while the groups work through the process for resolving the two remaining supplements to the ABF National Master Freight Agreement.

ABF said in a statement that the national agreement was approved by a majority of Teamster employees on June 27, with the increases in contributions to health, welfare and pension plans that were supposed to begin August 1 not going into effect as scheduled until the two remaining supplemental agreements are resolved.

As previously reported, the contract includes an immediate 7 percent wage reduction covering 7,000 ABF Teamsters that is restored by the fifth year of the contract. The overall agreement was narrowly approved by ABF Teamsters on June 27. But seven “local/area supplements” were again placed on the local ballots for approval.
Parent Arkansas Best Corp. said late in late August that only five of the seven supplements were approved after further negotiations and rank-and-file voting. Until supplemental agreements covering the Teamsters’ Central Region Local Cartage and the Western States Office Employees are approved, overall wage savings from the new contract will not start to be realized by ABF.
“The national master portion of the ABF National Master Freight Agreement has previously been approved, but will not take effect until the status of the two remaining supplements is resolved,” the Teamsters said in a statement.
Arkansas Best Corp. in a filing with the Securities and Exchange Commission, called the new five-year agreement “an important step to return ABF to its historic profitability, while preserving the best-paying jobs and benefits in the freight industry.”
ABF wants some of those jobs to be a little less well paid. Unionized rival YRC Worldwide is operating with an agreement that its 15,000 Teamsters are paid 15 percent less than the National Master Freight Agreement (NMFA) requires. That 15 percent wage cut amounts to about a $80 million savings annually for YRC, which has lost in excess of $2.6 billion since 2007.
Using that same calculus, ABF stands to save approximately $16.5 million annually from its 7 percent wage concession covering its 7,500 Teamsters. But those savings will not be realized until the final two supplemental agreements are approved. In this case, time literally is money.
Brad Delco, a trucking analyst with Little Rock, Ark.-based Stephens Inc., said in a note to investors that it might be mid-October before those final supplements are ratified. That could be a “best case scenario,” Delco noted.

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Purolator white paper highlights common Canadian shipping mistakes. From failing to appreciate the complexity of the customs clearance process to not realizing that Canada recognizes both French and English as its official languages, U.S. businesses frequently misjudge the complexity of shipping to the Canadian market. This often results in mistakes - mistakes that can come with hefty penalties and border clearance delays, and that can result in lingering negative perceptions among Canadian consumers.

At a certain point, it seems like the ongoing truck driver shortage cannot get any worse, right? Well, think again, because of myriad reasons we could well be in the very early innings of a game that is, and continues, to be hard to watch. That was made clear in a report issued by the American Trucking Associations (ATA), entitled “Truck Driver Analysis 2015.”

Coming off of 2014, which in many ways is viewed as a banner year for freight, it appears that some tailwinds have firmly kicked in, as 2015 enters its official homestretch, according to Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics (SOL) Report at last week’s CSCMP Annual Conference in San Diego. The SOL report is sponsored by Penske Logistics.

Article Topics

News · LTL · ABF Freight · Teamsters · All topics


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA