ABF Freight System will again appeal a $750 million lawsuit against the Teamsters union and various YRC Worldwide subsidiaries, after a federal judge rejected the carrier’s suit claiming the union illegally offered wage concessions to YRC and not ABF.
U.S. District Court Judge Susan Webber Wright threw out the ABF lawsuit for the second time Aug. 1, ruling that ABF had not exhausted its chances for redress under the National Motor Freight Agreement. Her decision accepts that ABF is part of the same 2008 NMFA contract as YRC Freight and its YRC's regional subsidiaries, but states NMFA’s National Grievance Committee should first address the matter.
“We continue to believe in the strength of our case, which concerns repeated violations of the National Master Freight Agreement by the (International Brotherhood of Teamsters) and YRC,” said ABF, a subsidiary of Arkansas Best.
The ruling could impact the less-than-truckload carrier’s negotiations with the Teamsters for a new labor contract next year and aid recovering YRC Worldwide. ABF said the length of the appeals process is uncertain but will likely “take many months.”