The International Brotherhood of Truckers (IBT) said local union leaders had approved a preliminary agreement between the International Brotherhood of Truckers and US light trucking company TForce Freight on a new five-year contract. Next, the deal must be approved by more than 330000 full-time and part-time truck drivers employed by UPS. "
Carol Tomé, CEO of UPS, said: "This agreement is a win-win-win agreement on an issue that is important to the leadership of the Truckers Union, our employees, UPS and our customers. This agreement will continue to provide UPS full-time and part-time employees with industry-leading compensation and benefits, while retaining the flexibility we need to remain competitive, serve customers and keep our business strong. "
Truckers General Union President Sean M. O'Brien said the temporary contract "sets a new standard for the labor movement and raises the bar for all workers".
ABF Freight is the second-largest LTL carrier after TForce, whose truckers approved a new contract in June. Like ABF's contract, TForce's preliminary agreement includes substantial increases in hourly and per-mile wages, as well as other provisions such as protecting workers from "intrusive" technologies such as in-car cameras and banning drones or self-driving cars from replacing them.
Under the proposed contract, full-time pickup and delivery drivers and clerks would add $4.5 per hour over the five-year term of the agreement, while road drivers would add 7 cents per mile. The agreement eliminates the two-tier wage and the split wage increase.
O'Brien said we 've changed the game, fighting day and night to make sure our members win a deal that pays good wages, rewards their labor, and doesn't require any concessions.
For months, Yellow and the truck drivers union have been fighting over the company's plan to restructure the LTL business. The company, which has revenue of $5.2 billion in 2022, has warned that it is running low on cash and could face bankruptcy if it does not restructure to get new financing. Without an influx of new money, these are wage increases that Yellow will struggle to match. Yellow has said that if it can get that financing, it will offer a raise.
Today, in addition to TForce's 7400 truckers, Yellow has about 22,000 truckers union employees and ABF has about 8,600 members. Satish Jindel, president of SJ Consulting Group, said that if Yellow is unable to secure the financing it needs as a going concern, TForce could be the main beneficiary.
The conclusion of agreement is a good thing for UPS, the parcel industry, the labor movement and shippers, Satish Jindel added. Shippers need to look for details to understand the impact of the contract on costs and how it will affect UPS's general rate increase in 2024.
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