Teamsters, LTL carriers reach tentative labour deal

CHICAGO (Feb. 6, 2003) — The International Brotherhood of Teamsters and negotiators for four major unionized trucking companies in the United States have reached a tentative agreement on a new five-year National Master Freight Agreement (NMFA), the labour union said today.

The new agreement would increase the average hourly wage of $19.90 US by $2.25 over five years. It would also maintain health-insurance coverage at no additional cost to workers.

Workers’ wages would be protected by a cost of living escalator if inflation rises above 3 per cent, with hourly pay to increase one cent for every 0.2 per cent that inflation rises. If inflation increases 1 per cent, workers would get a raise of five cents per hour. Inflation last year was 2.4 per cent.

The deal would prohibit employers from subcontracting any work in the United States to a Mexican carrier. It would also require companies to spec air-conditioning for all city equipment and walk-in sleeper cabs for all sleepers purchased after April 1.

The current agreement, which expires March 31, covers more than 65,000 Teamsters at ABF, Roadway Express, USF Holland, and Yellow. Smaller carriers that traditionally adopt similar contracts employ another 20,000 Teamsters, the union said.