ABF Freight System and the Teamsters union extended their current contract through Aug. 31, as the less-than-truckload carrier and union work on supplemental agreements rejected last month by ABF’s Teamster employees.
ABF Teamsters ratified a new five-year master contract in June but rejected six of 27 supplement agreements. Those agreements must be approved before the contract may take effect.
“In recent weeks, ABF management and Teamster leaders have visited areas covered by the supplements, clarified various issues and addressed concerns,” ABF said in a statement. “We remain hopeful that the agreements will be ratified, and it remains business as usual at ABF in the meantime.”
The five-year contract calls for a 7 percent wage reduction, but the reduction will be entirely recouped by the fifth year of the five-year contract, according to the union.
ABF is the sixth-largest trucking company on the JOC/SJ Consulting Group list of the Top 25 LTL carriers, ranked by revenue. ABF’s parent company, Arkansas Best, is the 11th largest trucking operator.
With 7,500 Teamsters, it is the third-largest Teamster employer in LTL trucking, following YRC Worldwide and UPS Freight.