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ABF wage cut refused after employee vote

Posted by Genie Wood on Fri, May 28, 2010 @ 03:56 AM

With over 6,500 employees voting, a 15% wage cut by ABF Freight System was refused by the Teamsters union.

Results revealed a 3,764 to 2,936 vote against changing the currently held National Master Freight Agreement labor contract with ABF. In the change, the 15% wage cut would have been met with a quarterly so-called earnings plus plan, an additional payment that would have come to employees following favorable economic outcomes for the the company.

The parent company of ABF, Arkansas Best Corp., characterized the deal as an important reorganization of the pay structure of the company. According to them, the new plan would have more effectively dealt with cost problems related to the recession.

The Teamsters union was adamant in their defense of their voters' decision. They said that, after the failure of this plan, they would be working with employers to establish a better deal that could save jobs and represent the company's workers at the same time.

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