Dive Brief:
- The International Brotherhood of Teamsters shared a glimpse Thursday evening of the wage, benefits and other gains its 8,500 members at ABF Freight are set to receive if they vote to approve the tentative labor contract the union negotiated with the LTL carrier.
- A $3.50-per-hour pay raise would be effective July 1, with a total of $6.50 in raises over the five-year agreement. Martin Luther King Jr. Day would be added as a paid holiday, and members will receive two additional paid sick days. The contract includes increased health, welfare and pension contributions.
- The tentative deal would also prohibit the use of several technologies that concern drivers: inward-facing cameras, audio recorders, body and biometric sensors, and driverless autonomous vehicles.
Dive Insight:
Teamsters leadership has endorsed the tentative deal hammered out by negotiators over the past several months. The union’s next step is to submit the terms to rank-and-file members for an in-person vote.
The five-year deal would run through June 30, 2028.
ABF Freight’s contributions to health, welfare and pension plans would increase by $4.46 per hour over the term of the deal. The wage increases in the first year alone would surpass those of the entire previous contract, union leadership boasted.
“This committee did a fantastic job and worked hard to secure this very strong tentative agreement,” Teamsters National Freight Director John Murphy said in a statement. “Their months of dedication and resolve have resulted in a comprehensive agreement that addresses members’ top priorities and secures significant economic gains and non-economic improvements.”
The deal came within weeks of an ABF Teamsters vote to authorize a strike, if necessary, in the event a deal could not be reached before the expiration of the existing contract at the end of this month. The agreement ups the ante for other LTL carriers that are also negotiating new contracts with the Teamsters.
“We are pleased with this successful outcome for our employees, our customers and other stakeholders who rely on us and thank everyone for their continued patience as we work toward full contract ratification,” an ABF Freight spokesperson told Transport Dive in an email as the tentative deal was announced June 7.
The company declined to provide any additional comment Friday.
