Subscribe to our free, weekly email newsletter!


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

By John D. Schulz, Contributing Editor
December 04, 2012

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

image
John D. Schulz
Contributing Editor

John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. He is known to own the fattest Rolodex in the business, and 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. This wise Washington owl has performed and produced at some of the highest levels of journalism in his 40-year career, mostly as a Washington newsman.


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

The U.S. Department of State maintained Thailand’s Tier 3 ranking, the lowest category, in its annual Trafficking in Persons (TIP) Report, which was released this week.

During this webcast we'll explore how supply chain execution convergence (SCEC) helps break down the barriers resulting from disparate, fragmented technology solutions allowing you to more effectively serve customers, adapt to changing business cycles, and save both money and resources.

Between a consumer-led revolution, competition from Amazon, international sourcing, and port shutdowns, retail supply chains are challenged like never before. A new e-book and self-assessment tool offer benchmarks and insights into how supply chains can keep up with the retail consumer.

The report, entitled “U.S. Freight Transportation Forecast to 2026, which is drafted by ATA and IHS Global Insight, calls for a 28.6 percent hike in annual freight tonnage, as well as a 74.5 percent gain in freight revenues to $152 trillion in 2026.

During this webcast experts will uncover how an industry first automated technology tool can fill the gaps in the shipment assignment processes, and optimize your transportation network for the lowest possible cost.

Article Topics

News · LTL · ABF Freight · Teamsters · All topics

Comments

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