A federal court in Arkansas has dismissed for the second time a claim by ABF Freight System Inc. against the International Brotherhood of Teamsters and less-than-truckload competitor YRC Worldwide.
ABF contended that several rounds of union wage and benefit reductions had provided a restructuring YRC with an unfair advantage, and that modifications to the National Master Freight Agreement should include any company that is party to it — or the changes should be declared null and void.
Union leadership had previously endorsed ABF’s call for similar concessions comparable to those granted YRC, citing the financial difficulties at ABF brought on by the recession. Rank-and-file Teamsters working for the Fort Smith-based carrier rejected the deal, however, prompting the court action.
The lawsuit was originally filed in November 2010 and was dismissed by Judge Wright in December of the same year. On appeal, the case was remanded to the district court for further consideration, resulting in the August 1st ruling.
ABF freight sought $750 million in financial damages.
Find out more about the ruling and the reasoning behind the judge’s decision at The Trucker.