ABF Teamsters want 2-year deal, $1 per-year wage hike, plus fringes

Using the “aim high” theory of labor negotiations, union locals representing 7,500 Teamsters at ABF Freight System have asked the seventh-largest LTL carrier for a two-year contract with healthy wage and benefit increases.

By ·

Using the “aim high” theory of labor negotiations, union locals representing 7,500 Teamsters at ABF Freight System have asked the seventh-largest LTL carrier for a two-year contract with healthy wage and benefit increases.
 
After a “two-man” meeting of local leaders in Kansas City late last month, Teamsters locals are asking ABF for $1-per hour wage increases and additional contributions to their pension, health and benefit package.

ABF’s current contract with the Teamsters expires next March 31. The company has already asked that it negotiate separately from chief union rival YRC Worldwide, which has been revived financially under new President and CEO James Welch.
 
Interestingly, if the company were to agree with a two-year contract, that would mean the next contract would expire in 2015—when YRC’s contract covering some 20,000 Teamsters also expires.
 
Neither the Teamsters nor ABF officials are commenting publicly on the details of the contract proposals.
 
But Teamsters for a Democratic Union, the dissident wing of the 1.4 million member union, said in an online note to its members that it doubted whether the company would accept both the length and the wage increase as proposed.
 
ABF, the largest unit of parent Arkansas Best Corp., has suffered financially during the Great Recession and its aftermath. Its stock has lost more than 75 percent of its value and was trading around $8 per share recently.
 
Arkansas Best posted earnings of $6.5 million in the third quarter, compared with net income of $12.3 million. Company officials have publicly cited its high cost structure when compared to chief non-union competitors such as Con-way and Old Dominion Freight Line.
 
In addition, ABF currently is suing the Teamsters over what it views as an unfair cost advantage that YRC currently has. YRC Teamsters earn about 15 percent less than ABF Teamsters, even though both companies are signatories to the National Master Freight Agreement.


About the Author

John D. Schulz
John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. John is on a first-name basis with scores of top-level trucking executives who are able to give shippers their latest insights on the industry on a regular basis.

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!

Article Topics

ABF Freight · LTL · Teamsters · All Topics
Latest Whitepaper
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...