Mar 22, 2013, 1:14pm CDT Updated: Mar 22, 2013, 3:09pm CDT
ABF Freight System tries again to end YRC’s union concessions
ABF Freight System Inc., for the third time, will have its day in court to challenge a series of concessions the International Brotherhood of Teamsters granted to YRC Worldwide Inc.
The less-than-truckload carrier, a subsidiary of Arkansas Best Corp. (Nasdaq: ABFS), is scheduled to present oral arguments in a federal appeals court on April 8.
ABF, the chief unionized rival of Overland Park-based YRC Worldwide Inc. (Nasdaq: YRCW), argues that three rounds of concessions negotiated between 2008 and 2010 that save YRC an estimated $350 million a year in labor costs violate the National Master Freight Agreement, a contract covering freight workers throughout the country.
If ABF succeeds, it could mean the concessions — which played a large role in the survival of YRC — would be invalidated.
ABF first filed suit in 2010 and was denied by a federal judge. In 2011, that decision was overturned by a federal appeals court, and ABF filed suit once again.
In 2012, that appeal was denied by a federal appeals judge.
In this appeal of the appeal, ABF argues that the court was mistaken in dismissing the company’s breach-of-contract claim against the Teamsters and YRC. ABF is asking for the 2012 decision to be reversed and for the court to remand for further proceedings.
While ABF files suit once again, the company is hashing out a new labor agreement with its 7,500 Teamster employees before the current agreement expires March 31. The company seeks concessions similar to those granted YRC to cut labor costs.
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