ArcBest, Teamsters reach all agreements for new contract


FORT SMITH, Ark. — ArcBest, a logistics company, said all supplemental agreements to the ABF National Master Freight Agreement with the International Brotherhood of Teamsters have been fully ratified, and that all of the agreements have a July 29 implementation date.

The 63-month agreement covering Teamster-represented employees at ABF Freight, ArcBest’s LTL subsidiary, runs through June 30, 2023, and is retroactive to April 1, 2018. The ABF National Master Freight Agreement with the IBT was initially reached on March 28, 2018, and was ratified on May 10, 2018, along with a majority of the regional supplements.

Major economic provisions of the master agreement include:

  • Restoration of a vacation week, which begins accruing on anniversary dates that begin on or after April 1, 2018, with the new vacation eligibility schedule being the same as the applicable 2008-2013 supplemental agreements
  • Wage increases in each year of the contract, beginning July 1, 2018
  • A $1,000 ratification bonus for full-time active employees and $500 for qualifying casual employees, payable within 30 days of ratification
  • Contributions to multiemployer pension plans to remain at current rates for each fund
  • Continuation of existing health coverage at no cost to represented employees
  • Changes to purchased transportation provisions with certain protections for road drivers
  • Profit-sharing bonuses upon ABF Freight’s achievement of annual operating ratios of 96 percent or below for a full calendar year during the contract period

The combined contractual wage and benefit rate, including the ratification bonus and additional vacation time, increases approximately 2 percent on a compounded annual basis throughout the contract period.  The additional week of vacation will be expensed as it is earned for anniversary dates that begin on or after April 1, 2018. The ratification bonus will be expensed over the 63-month contract beginning April 1, 2018.

“The full ratification of our labor agreement with the Teamsters is a very positive step forward for ABF Freight and ArcBest, and we thank all of our employees for their dedication to serving our customers while the process was underway,” said Chairman, President and Chief Executive Judy R. McReynolds.  “Our goal was to achieve a contract that was fair to employees and affordable for the company. Our Teamster employees are the best-compensated in the industry in terms of wages and benefits including healthcare and pension. This agreement provides stability for our employees and for our customers at a time when the logistics industry continues to undergo rapid change.”

“This important agreement for ABF gives us a strong foundation for another five years and provides additional opportunities for us to grow,” said ABF Freight President Tim Thorne. By focusing on our customers who value our well-regarded LTL service and the additional supply chain solutions that ArcBest offers to solve complex logistical challenges, we are well positioned for the future.”

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