ABF Freight System will be negotiating its future labor contract with the Teamsters union directly, and will no longer be part of the National Master Freight Agreement.
According to The City Wire website, ABF Freight System President and CEO Roy Slagle sent a letter on Aug. 13 to the Teamsters that stated ABF's intentions.
The article goes on to indicate that the probable cause for the move by ABF Freight System, a subsidiary of Arkansas Best Corp., is a lawsuit ABF brought against the International Brotherhood of Teamsters and several YRC subsidiaries.
ABF filed legal action in 2010 against the Teamsters and various YRC subsidiaries for violation of the National Master Freight Agreement. ABF claimed the concessions the Teamsters made in its negotiations with struggling YRC were not allowed under the NMFA.
The lawsuit was recently dismissed for the second time by Judge Susan Webber Wright of the U.S. District Court for the Western District of Arkansas.
HDT was not able to reach a spokesperson for either parties at press time.Related articles: 9/7/2012 ABF Continues Legal Proceedings Against Teamsters, YRC8/7/2012 Judge Again Dismisses ABF Suit Against Teamsters7/11/2011 ABF Can Proceed with Suit Against YRC, Teamsters1/21/2011 ABF Appeals YRC-Teamsters Decision12/20/2010 ABF Suit Against YRC, Teamsters Dismissed11/2/2010 ABF Challenges YRC/Teamsters Deal