Teamsters Reject 15% Wage Cut at ABF
The Teamsters union’s rank-and-file membership has rejected a proposed 15% wage cut at ABF Freight System, the two sides said.
The move to modify the union’s current National Master Freight Agreement labor contract with less-than-truckload carrier ABF was rejected by a 3,764 to 2,936 vote, the union said in a statement.
More than 6,500 employees cast ballots, the Teamsters said on its Web site. Ballots were sent out to about 7,000 active employees and another 1,000 with recall rights.
The proposal also included an “earnings plus plan” for all employees that would have paid quarterly payments when the company’s operating ratio reached certain profitable levels and an equal reduction of non-union compensation, ABF said
“It is unfortunate that our union employees have chosen not to participate in better aligning ABF’s cost structure with those of its LTL competitors,” said Judy McReynolds, chief executive officer of Arkansas Best Corp., ABF’s parent company.
“The current economic decline has been unprecedented in its depth and duration [and ABF] . . . has made significant financial sacrifices during this period. Going forward, we will evaluate our various options in dealing with our cost structure and the other issues we face during this challenging freight environment,” she said in a statement.
“We took a proactive approach to help ABF get through the worst economic recession since the Great Depression, but our members have rejected the plan,” said Tyson Johnson, director of the Teamsters National Freight Division.
“The union will regroup to determine if there are other means to protect jobs and benefits. Our first priority continues to be the members’ best interests,” he said in a statement.
Arkansas Best Corp. is ranked No. 18 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
