ABF Freight System, Inc. Files Legal Actions Against YRC Companies

ABF Freight System, Inc., the largest subsidiary of Arkansas Best Corporation ABFS has filed legal actions today against the International Brotherhood of Teamsters and other parties including several YRC Worldwide subsidiaries YRCW for violation of the National Master Freight Agreement, the collective bargaining agreement covering most unionized trucking employees in the country. The legal actions, filed administratively under the contract and in federal court in Arkansas, explain in detail how the defendants violated the NMFA in 2009 and 2010 by entering into concessionary side agreements with YRC Companies to the exclusion of ABF and other companies signatory to the NMFA. These agreements led to ongoing significant wage and benefit reductions and other economic concessions that were applied only to YRC Companies, and not ABF. The third and latest amendment to the NMFA is expected to "provide further wage, benefit and work rule changes that are expected to generate an average of $350 million in annual savings through the end of the extended agreement," according to YRC Worldwide Inc.'s 8-K report, filed on September 29.