Monday, local Teamsters Unions from across the country endorsed the financial relief plan outlined in a tentative agreement with less-than-truckload carrier ABF Freight System last week.

The plan involves a 15 percent pay cut for ABF workers, while protecting pension, health care and welfare benefits.

"Local union leaders understand that we need to take a bold step to help ABF get through this terrible economy and that we must act now to prevent far worse problems down the road," said Tyson Johnson, director of the Teamsters National Freight Division. "No one wants to see wage cuts, but this agreement protects our ABF members' jobs and their health, welfare and pension benefits."

Teamsters members wanted verification of the company's financial situation, and a financial advisor confirmed that ABF is losing money and has been exhausting its cash reserves, Johnson said.

There are about 6,000 Teamsters actively employed with the carrier, with another 1,000 on recall.

According to analyst group Stifel Nicolaus, union workers' wages make up about 63 percent of total compensation, so the change could save the company $18 million per quarter. With the wage cut in place, Stifel Nicolaus analysts expect ABF's earnings per share to gain $1 in 2010 and $1.72 for 2011.

Transportation research group Wolfe Trahan & Co. expects strong upward earnings revisions if the wage concessions go through, but they don't believe the company will reach its earnings peak of $3.64 a share in the next cycle.

The Teamsters said the schedule for balloting will be available soon.