On Wednesday, the Teamtsers union announced the approval of a strike authorization by its members covered under ABF Freight's national master freight agreement. This action is believed to be a negotiating tactic by the union and indicates potential next steps if ongoing talks between the two parties fail to yield a new agreement.
In 2022, ArcBest had over 8,600 union employees. The current labor contract stipulates a profit sharing program paying out 3% based on the ArcBest asset-based division's operating performance and a 2% annual wage increase.
In a letter obtained by FreightWaves, John Murphy, Teamsters national freight director and co-chair of the organization's negotiating arm, informed local unions that the secret ballot resulted in an overwhelming 97.73% of votes cast in favor of the measure. This strong show of support from the members comes at a critical time as negotiations enter their final phase.
The Teamsters' statement on May 12 indicated that bargaining had resumed between the union and ABF, ArcBest's less-than-truckload subsidiary. However, the parties currently remain far apart on economics, as stated by the Teamsters. Negotiations on challenging issues such as the use of outside transportation, autonomous vehicles, and inward-facing cameras, which the union has historically opposed, have also commenced.
We want to assure our customers that TLI is closely monitoring the situation and maintaining open lines of communication with ABF Freight. We are committed to providing uninterrupted service and will work diligently to minimize any potential impact on our customers' operations.
The update further mentioned that negotiations between ABF Freight and the Teamsters are expected to resume on Monday. We hope that these talks will lead to a mutually agreeable resolution that supports the interests of all parties involved.
ABF's current labor contract expires on June 30th, and the union has pulled forward labor talks with Yellow by a year as the two parties have been unable to reach consensus on those labor terms. The teamsters negotiating committee is also working on agreements with UPS and TForce Freight.
The latest tentative concessions made in the UPS national talks include:
TLI will continue monitoring negotiations, and is happy to address any concerns or questions! Please continue providing updates that aid the transportation & logistics community.
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