ABF Cites Violations Of Contract In Suit
Posted: Tuesday, November 2, 2010 8:41 am
By Wanda Freeman
TIMES RECORD • WFREEMAN@SWTIMES.COM | 0 comments
ABF Freight System Inc. on Monday filed a grievance and a federal lawsuit against the International Brotherhood of Teamsters and several subsidiaries of trucking competitor YRC Worldwide.
According to a news release, Fort Smith-based ABF alleges violations of the National Master Freight Agreement, the collective bargaining agreement that covers most unionized trucking companies in the country.
In its lawsuit, filed in U.S. District Court for the Western District of Arkansas in Fayetteville, ABF claims the Teamsters made three prohibited amendments to the NMFA granting wage and pension concessions to YRC that gave the YRC companies a competitive advantage.
After union members ratified the latest concessionary amendment on Friday, YRC, based in Overland Park, Kan., announced the new agreement would save it $350 million a year.
ABF spokesman David Humphrey said his company, the largest subsidiary of Arkansas Best Corp., tried a number of options to resolve the situation.
"If you're going to make changes to an industrywide agreement, you need to find an industrywide solution," he said.
As late as April, ABF and the Teamsters had worked out a preliminary agreement calling for a 15 percent pay cut like YRC's, but union members rejected the proposal in May.
The original agreement began April 1, 2008, and is due to expire March 31, 2013.
YRC's latest concessionary agreement extends the labor contract to March 2015, Humphrey said.
ABF filed a grievance Monday claiming the side agreements violate contract rules.
But in its federal lawsuit, ABF argues that the National Grievance Committee should not review the grievance because committee members would be directly involved in the case.
If the judge declines to appoint a neutral tribunal in place of the committee, or if the tribunal fails to find a resolution, ABF asks the court to set aside the YRC agreements and award $750,000 damages.
Humphrey said the $750,000 figure is ABF's estimate of profits lost through the end of the contract because it did not enjoy the same wage and pension concessions granted to YRC.
The Teamsters union on Monday posted a short statement about the lawsuit on its website.
"After initial review of the ABF lawsuit and grievance, the Teamsters union finds each of them to be frivolous and without merit," stated Brad Raymond, general counsel to the union. "The Teamsters will vigorously defend against the lawsuit and grievance and will withhold further comment until we have thoroughly reviewed the documents."
Teamsters press secretary Galen Munroe said the online statement would be the only comment about the lawsuit.
The IBT and the Teamsters National Freight Industry Negotiating Committee as well as Teamsters Locals 373 of Fort Smith and 878 of Little Rock are named as defendants in the lawsuit along with YRC Inc., New Penn Motor Express, USF Holland Inc. and industry bargaining agency Trucking Management Inc.
According to a news release, ABF has 8,000 union employees.
The company is represented by Littler Mendelson law firm of Fayetteville.
http://www.swtimes.com/business/...e-e687-11df-a2df-001cc4c002e0.html
By Bob Sechler, Of DOW JONES NEWSWIRES
Members of the Teamsters union have approved a new round of deep employee concessions at YRC Worldwide Inc. (YRCW), in a vote both union and YRC leadership viewed as crucial to the struggling trucking company's survival.
"We firmly believe this plan is the only hope for saving our members' jobs as this recession continues to cause so much hardship," said Tyson Johnson, director of the Teamsters National Freight Division, in a prepared statement after the vote count was released Saturday.
The International Brotherhood of Teamsters said the agreement "is aimed at saving more than 25,000 union jobs." It noted that about 67% of YRC Worldwide union members cast ballots overall.
The concessions were ratified 62% to 38% by union members at the company's YRC and Holland division, and 69% to 31% at its New Penn unit.
A YRC representative wasn't immediately available for comment Saturday.
Among other things, the new concessions extend a previously agreed-upon 15% wage reduction for an additional two years, until March 31, 2015. The date upon which YRC must resume pension contributions also is delayed until June 1, 2011, with the new contribution to be 25% of the contribution rate in effect on July 1, 2009.
But the agreement also requires the company to reduce its debt and raise new equity, with a deadline of Dec. 31 for a definitive agreement with an equity player or YRC will have to convert some debt to equity. In addition, the plan provides union members with equity, with the precise amount to be determined during negotiations with the new equity investor and lenders.
The Teamsters also can void the concessions in the event of a YRC bankruptcy.
YRC, which teetered under a heavy debt load last year and teetered on the edge of bankruptcy in December, has won extensive concessions over the past two years, both from the union and from its lenders, and it has cut thousands of employees.
The company announced last week that it expects to show improved third-quarter results when it reports the figures Friday. It said it expects a third-quarter operating loss of $18 million to $22 million, compared with $118 million a year ago and $35 million in the second quarter, excluding a stock-compensation gain.
Meanwhile, YRC said its national and regional operations saw per-day tonnage rise 1.2% and 2.1%, respectively, from the second quarter. It said revenue per shipment increased 1.9% and 3.7%, respectively, from a year ago.
-By Bob Sechler, Dow Jones Newswires; 512-258-1690; bob.sechler@dowjones.com
(END) Dow Jones Newswires 10-30-101419ET Copyright (c) 2010 Dow Jones & Company, Inc.
http://www.nasdaq.com/aspx/...s-aimed-at-keeping-yrc-worldwide-viable
aktuell:
washington mutual -4410€
ambac -3390€
yrcw -3550€
genta -3180€
das ist großer beschiss. super news verpuffen hier im nu. die ziehen uns regelrecht ab. ob ich zu den kursen verkaufe weiß ich noch nicht. das geld bei genta, ambac und wamu ist wohl endgültig weg. :( aber neu einsteigen werde ich bei einem us-unternehmen bestimmt nicht mehr..
Qzahlen gut auschauen dann gehts in die andere richtung..
Zur Zeit werde viele Ängste erzeug und man kann nicht dagegen argumentieren..
Auch eine neue Wahl können wir nicht gebrauchen..
Hoffen auf gute Zahlen an Freitag...
Bist dahin könnte es weiter runter gehen leider...
