(The International Brotherhood of Teamsters distributed the following press release on March 28.)
WASHINGTON, D.C. — International Brotherhood of Teamsters General President Jim Hoffa today announced that Teamster freight members have overwhelmingly ratified a new five-year National Master Freight Agreement (NMFA) that provides significant wage increases, maintains strong health care without premium co-pays, protects strong pensions and other improvements.
“This historic contract provides security for our freight members and their families,” Hoffa said. “At a time when corporations are squeezing workers more and more, this agreement goes in the other direction and rewards our members for the wealth they create.”
“We maintained strong health care benefits, protected our pensions and won the highest wage increases in more than a decade,” added Hoffa, who chaired the Teamsters National Freight Industry Negotiating Committee (TNFINC).
The contract, which covers about 65,000 Teamsters, was ratified with 84 percent of Teamsters voting to support it. Voting took place during the past three weeks..
“I’m pleased that our members ratified this contract, because it is the most improved master freight agreement I’ve ever been involved with,” said Phil Young, Co-Chairman of
TNFINC and the Teamsters Freight Director, who has helped negotiate the contracts for more than two decades. “Beyond the solid wage and benefit increases, there is language that improves our members’ daily conditions on the job.”
The Teamsters and the four major union trucking companies – Roadway Express, Yellow Transportation, ABF Freight System and USF Holland – reached tentative agreement on February 6, shortly after 95 percent of union freight members authorized a strike, if necessary. The rank-and-file support of the Teamsters negotiating committee sent a strong message to employers, who moved quickly in the direction of the union’s demands to secure a contract.
The agreement reverses prior union administration’s handling of negotiations—when concessionary agreements resulted over the past decade. In fact, the total value of the new NMFA is $1.7 billion—compared to less than $1 billion in 1998.
A few examples of the many contract improvements include:
–Wage increases of $2.25 per hour over the life of the agreement (.50, .40, .40, .45, .50) compared to $1.40 per hour in the 1998 agreement;
–Health and pension increases of $3.10 per hour (.60, .60, .60, .60, .70) compared to $2.10 per hour in the 1998 agreement;
— A real COLA of $.01 per hour for every .2 increase in the CPI after 3 percent; — Employers prohibited from subcontracting any work in the United States to a Mexican carrier;
— Health and welfare insurance paid for military leave increased from 12 to 18 months; — One additional week vacation after 30 years of service;
–Air conditioning for all city equipment purchased after 4/1/03;
— Walk-in sleeper cabs for all sleepers purchased after 4/1/03;
— Expanded employment opportunities to laid off NMFA workers.
The Teamsters also made strong gains in the supplemental agreements that address work rules and other issues by region or location.
The agreement was unanimously endorsed by the union’s negotiating committee, and by representatives from the more than 200 local freight unions across the United States.
“Our members were united throughout the process, which made this contract campaign successful,” Hoffa said. “I want to thank each and every one of our freight members for their support of the union’s negotiators.”
The NMFA expires March 31 and covers more than 65,000 Teamsters at the four major union companies. Smaller carriers that traditionally adopt similar contracts employ another 20,000 Teamsters.
The International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women throughout the United States and Canada.