Teamsters and the Motor Freight Carriers Assn. (MFCA) announced in Chicago Thursday that a tentative agreement has been reached on a new National Master Freight Agreement (NMFA).

The five-year agreement applies to ABF Freight System, Roadway Express, USF Holland and Yellow Transportation.
"We have reached an agreement that gives our companies the tools to provide expanded service offerings, provides job security for our employees and ensures uninterrupted service to our customers," said Tim Lynch, president and CEO of the MFCA, which is the national trade association representing the unionized general freight carriers. "This is truly a win-win-win opportunity for our companies, our employees and our customers."
Lynch said the agreement, reached almost two months before the current contract's expiration, will allow the companies to maintain their dominant position in their core market business and provide growth opportunities in regional and next day service markets.
International Brotherhood of Teamsters (IBT) President Jim Hoffa said, "This contract will provide a shot in the arm to American working families who have been faced with givebacks and concessions over the last year.
"The nation is in the depths of recession and on the brink of war and we maintained our strong health care benefits, protected our pensions and won the highest wage increases in more than a decade."
He said the value of the tentative agreement is $1.7 billion -- compared to $700 million in 1998. The average wage and benefits increase is 3.4% over the term of the agreement and the contract ensures that members will have no health care co-pays for the full five years.
Hoffa said the agreement also stipulates that employers are prohibited from subcontracting any work in the United States to a Mexican carrier; must add one additional week of vacation after 30 years of service; provide air conditioning on all city equipment purchased after April 1, 2003; and provide walk-in sleeper cabs for all sleepers purchased after April 1, 2003.
The current NMFA, which expires March 31, covers more than 65,000 Teamsters at ABF, Roadway Express, USF Holland and Yellow. Smaller carriers that traditionally adopt similar contracts employ another 20,000 Teamsters.