JOC Staff | Nov 30, 2012 4:36PM EST
The Teamsters union is considering a two-year contract with a $1 per hour wage hike in each year as the starting point for contract talks with ABF Freight System.
The union’s initial bargaining points were distributed at a meeting with officers from freight locals in Kansas City and obtained by The Journal of Commerce.
The proposals for an “ABF-National Master Freight Agreement” would maintain current pension and benefit contributions and raise pay for dock casual workers.
The new contract would replace a five-year pact and expire as the Teamsters contract at ABF rival YRC Worldwide comes up for renewal in 2015.
ABF and the Teamsters union’s freight industry negotiating committee expect to begin contract talks Dec. 18. The current contract expires March 31.
The union plan was posted online by the Teamsters for a Democratic Union, a group of union dissidents opposed to granting the trucking company concessions.
ABF Freight System is expected to press the union for wage concessions to make the $1.7 billion less-than-truckload carrier's labor costs more competitive with other LTL players.
“Our goal is to reach an agreement that enables us to better compete in a rapidly changing freight transportation market,” said ABF President and CEO Roy Slagle.
The Fort Smith, Ark., companies argues three rounds of wage concessions granted by the Teamsters to $4.9 billion competitor YRC Worldwide injured its business.
ABF has sued the Teamsters and YRC Worldwide companies over the legality of those concessions, and it is appealing a federal court decision dismissing its case.
YRC Worldwide, UPS Freight and ABF Freight are the largest unionized LTL trucking companies. The largest LTL operator is non-union carrier FedEx Freight.