Teamsters at ABF Freight ratify new labor deal

Terms reached on rejected supplemental agreements

A new five-year labor agreement will raise hourly wages by a total of $6.50. (Photo: Jim Allen/FreightWaves)

Less-than-truckload carrier ABF Freight announced late Friday its Teamster employees ratified a five-year collective bargaining agreement. The two parties previously came to terms on wages and other items two weeks ago.  

The new deal raises hourly wages by a total of $6.50 and benefits contributions by $4.46 per hour. Two additional paid sick days and one additional paid holiday were added. The company’s more than 8,600 Teamster employees “overwhelmingly” agreed to the deal, a news release said.

All but two of 27 supplemental agreements were approved. However, the union and ABF reached tentative agreements on the remaining two supplements, which will be voted on by members next week.

“It remains business as usual at ABF as the negotiating teams work through the final two remaining supplements,” ABF’s statement read. “ABF employees will continue to work under terms of the current contract during this process.”

The Teamsters are also negotiating labor contracts with UPS (NYSE: UPS), Yellow Corp. (NASDAQ: YELL) and TForce Freight (NYSE: TFII).

“This national agreement will serve as the model for the rest of the freight industry,” said Sean O’Brien, Teamsters general president, in a separate statement. “It will set the tone for national freight contracts moving forward.”

ABF Freight System is a subsidiary of transportation and logistics provider ArcBest (NASDAQ: ARCB).

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.