William B. Cassidy | Nov 01, 2010 12:57PM EDT
ABF Freight System is suing the International Brotherhood of Teamsters and three YRC Worldwide subsidiaries over the latest round of labor concessions at YRC.
ABF charges the concessions granted to its largest competitor by the union violate the National Master Freight Agreement, the union's contract with ABF and YRC.
The most recent NMFA covered ABF as well as YRC, Holland and New Penn, but last year's wage and benefit concessions at YRC in essence split that agreement.
The lawsuit was filed shortly after Teamster members at YRC Worldwide ratified an agreement extending wage, benefit and pension concessions for two years.
ABF claims the YRC concessions, which amended the NMFA as it applies to YRC companies, violate provisions of the contract that create "a single bargaining unit."
The NMFA prohibits other "individual or collective contracts," ABF said.
Along with its lawsuit, ABF filed a grievance with the National Grievance Committee established by the NMFA for resolving national contract disputes.
ABF said the 15 percent wage cut and pension contribution suspension granted by the Teamsters to YRC last year "tilted the industry playing field" in YRC's favor.
ABF's labor costs per driver are higher than those of national LTL carrier YRC and several other LTL competitors, according to a survey by SJ Consulting Group.
ABF Teamsters rejected a 15 percent wage cut and other concessions in May, despite nearly $100 million in losses suffered by ABF in 2009.
The company reported a $12.6 million loss in the second quarter of 2010, despite an 11.9 percent increase in tonnage. ABF lost $35.7 million in the first quarter.
Little Rock, Ark.-based ABF reports its third quarter earnings Wednesday.
-- Contact William B. Cassidy at wcassidy@joc.com.
