Rival sues YRC over Teamsters contract

FT. SMITH, Ark. – YRC Worldwide is being sued by one of its largest competitors in response to a labor agreement the LTL giant struck with the Teamsters union this week.

ABF Freight System has filed a lawsuit in Arkansas against both YRC (and its carrier subsidiaries New Penn Motor Express and USF Holland) and the Teamsters for $750 million.

The lawsuit and accompanying grievance alleges that recent concession agreements between YRC and the Teamsters violates the National Master Freight Agreement (NMFA) — a bargaining agreement that covers most Teamster-unionized LTL companies in the U.S.

These "concessionary side agreements," then, gives YRC a "significant" competitive advantage in wage and benefit reductions, to the exclusion of ABF and other companies signatory to the NMFA, the company says.

“It is ABF’s firm belief that the three rounds of concessions granted to YRC — with the latest deal just ratified last week — by the (Teamsters) are in violation of the NMFA that has been in effect since April 2008,” said Wesley Kemp, president and CEO ABF Freight System, Inc.

“The NMFA applies equally to every company that signed it and quite simply, with these three amendments, it does not do that. We need a long-term, industry-wide solution that is fair to all NMFA parties. We have the obligation … to enforce our rights under the NMFA and compete on the same playing field with our industry peers.”

ABF added that it is seeking a legal ruling in court because the grievance procedure of the NMFA "is fundamentally flawed by reason of conflicts of interest on the part of both labor and employer representatives who normally would be impaneled to hear ABF’s grievance."

In a statement, the Teamsters said it finds the lawsuit "to be frivolous and without merit."

"The Teamsters will vigorously defend against the lawsuit and grievance and will withhold further comment until we have thoroughly reviewed the documents."

YRC has not yet issued a response.  


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