We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » ABF, Teamsters agree to another 30-day contract extension after union leaders spurn offer
newsworthy

ABF, Teamsters agree to another 30-day contract extension after union leaders spurn offer

April 22, 2013
DC Velocity Staff
No Comments

The Teamsters union and less-than-truckload (LTL) carrier ABF Freight System Inc. agreed late Friday to another 30-day extension of their current contract after management made an economic offer unlikely to go over well with the company's approximately 7,500 employees.

Under the proposal, made last week during talks in Dallas, ABF employees would take a 6.5-percent wage cut, accept reductions in pension contributions as well as caps on those contributions, and pay about $3,000 a year for family health coverage, according to reports from the Teamsters and from dissident group Teamsters for a Democratic Union (TDU). According to TDU, the wage cuts would reduce Teamster salaries, on average, by about $4,000 a year.

The latest extension, the second in as many months, runs until May 31. The contract originally expired March 31 but was extended until the end of April. There are several bargaining options available to both sides. First, the existing contract could be extended again for an agreed-upon time period. Another option would be for operations to continue without a contract. This is a dicey scenario for both sides, however. It's risky for management because the union could call a strike without notice. It's also risky for the union because it could be decertified by management and lose access to hard-won benefits from the previous contract. Finally, there could be a strike on June 1 if no agreement of any kind is reached.

In a statement issued Friday, the company said the terms of its proposal are designed to bring ABF's labor costs closer in line with the rest of the LTL industry. ABF has the highest labor costs in the LTL segment, a factor in the company's $230 million in cumulative losses since 2009.

"We have taken a balanced approach to the negotiations and have specifically avoided proposing the meat-axe wage and benefit cuts that our competitors have been forced to adopt," the company said in the statement. It added that even with the proposed cuts, ABF workers will remain the best compensated in the industry. ABF did not disclose specifics of its offer in the statement.

If comments from Teamster officials are any indication, it will be a long slog in resolving core wage and benefit issues.

"While we've made progress on major local and...work rule issues over the last few months, the company's new proposals this week are very disappointing and place our progress at risk," Gordon Sweeton, co-chairman of the Teamsters ABF National Negotiating Committee, said Friday. "We've put millions of dollars worth of operational relief on the table but that apparently is not enough."

Transportation Trucking Less-than-Truckload
KEYWORDS ABF Freight System Inc.
  • Related Articles

    ILA, management agree to 90-day contract extension

    Dockworker strike averted for now as ILA, management agree to 30-day pact extension

    ABF, Teamsters negotiators agree to tentative collective bargaining compact

  • Related Events

    Enabling Next-Day Delivery with Warehouse Automation

Recent Articles by DC Velocity Staff

Global air cargo demand returned to pre-Covid levels in January

Descartes expands customs compliance toolkit with $36 million QuestaWeb acquisition

CMA/CGM to add LNG-powered ships to U.S. service

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Relaxed regulations for drone parcel delivery to take effect in March

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • What Level of Automation is Right for Your Warehouse?

  • Old Dominion adds nine freight service centers to handle business growth

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories. The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing