Teamsters Considering ABF Freight Concession Talks

The Teamsters union said Monday it is considering launching formal talks with ABF Freight System to renegotiating the less-than-truckload carrier's contract

In a notice sent to unionized workers at the company, the international union said is is discussing the prospects for negotiations with local union leaders, and will hold a conference call with all ABF members Thursday.

"We now believe it is in our best long-term interest to fully engage ABF through formal discussions to determine if and what type of contractual relief may be necessary," the Teamsters said in the ABF notice, which the union released publicly.

If discussions proceed, the union said it will apply similar standards as it did to YRC Worldwide last year, when it granted the company a 15 percent reduction in wages and suspended pension contributions.

"We will apply similar standards of equality of sacrifice, access to information, 'snap back' provisions and other corporate and financial protections negotiated under the relief memorandums with YRCW," the Teamsters said.

The union until now refused to discuss concessions with ABF similar to those it granted YRC Worldwide, but it publicly responded Monday to the company's call for dialogue, saying steep losses at the carrier change the situation.

ABF Freight -- one of the largest Teamster employers after YRC Worldwide -- lost $99.9 million in 2009 and saw its revenue decline more than 21 percent to $1.4 billion.

Until last August, ABF operated under the same national freight contract as YRC Worldwide's largest subsidiaries. But the YRC-Teamster agreement left ABF with substantially higher wages and benefit costs than its larger competitor.

Pension costs have been a major concern for ABF. The Teamsters granted YRC Worldwide an 18-month suspension of pension contributions.

"After gathering input from local union leaders and members, we will determine the next steps," the Teamsters said in the notice.

Contact William B. Cassidy at wcassidy@joc.com.