monthly extension and could be the first of many.
By contrast to the situation with ABF, the Teamsters
appear to be playing well with other companies in the sandbox. At press time, the union looked to be on track to clinch
a new contract with UPS Inc. and its UPS Freight LTL subsidiary by the beginning of May, which would be roughly
three months before both pacts expire. And Teamster leaders agreed in late April to a restructuring at YRC Freight
that allows YRC’s long-haul unit to close three breakbulk
terminals and consolidate 29 “end-of-line” terminals used
as freight pickup and final delivery points. The change is
expected to save YRC Freight up to $30 million a year by
improving line-haul density, cutting building and leasing
expenses, and reducing freight “touches” that often prolong
transit times, raise labor costs, and increase damage claims.
It should be noted that ABF and the Teamsters bring baggage to the table that other companies don’t have. In 2010,
ABF and Teamster leaders agreed to wage and benefit concessions to roughly match three extraordinary givebacks agreed
to by YRC’s Teamster workers to keep the carrier alive at the
time. However, ABF’s rank and file spurned the proposal.
Then in a move ABF may live to regret, it sued YRC and
the Teamsters in an effort to void those agreements on
grounds they were negotiated outside of the broad labor
compact that covers the trucking industry. Despite several
legal setbacks, ABF insists on pursuing the suit, an approach
that can’t sit well with the Teamster hierarchy. After all, hav-
ing a three-year lawsuit hanging over one’s head might not
provide a strong incentive to bargain with the party that
brought it. ;
they said it:
“We are more regulated now than we were before
deregulation.”
—James L. Welch, CEO of YRC Worldwide Inc., at
NASSTRAC’s annual conference
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