Yellow Roadway Warns: UPS-Freight Deal Will 'Set Precedent'

October 18, 2006. Yellow-Roadway CEO William Zollars told Traffic World magazine that any deal between the Teamsters and UPS Freight, covering one terminal of 120 workers in Indianapolis, will ‘set precedent’ for the National Master Freight Agreement.

Because Hoffa’s card check and neutrality agreement covered only one terminal and is now void, Zollars expects any contract that UPS Freight would accept will fall far short of the NMFA, and will not allow the employees into the Central States Teamster Pension Plan. Hence Zollars’ interest in using the deal as a precedent to gain concessions in the NMFA.

Yellow Roadway Wants Early Bargaining Too

“We’d be interested in doing that,’” Yellow Roadway’s CEO William Zollars told the Akron Beacon Journal on July 28, referring to opening early bargaining with the Teamsters to dodge any possible strike threat.

Yellow Roadway Corporation employs 50,000 Teamsters under the National Master Freight Agreement at Yellow, Roadway, Holland, New Penn, Bestway and Reddaway. Since the UPS and freight contracts do not expire for two years, the union has less bargaining power this far in advance. The Beacon Journal reported that is the reason that “UPS decided to move up the start of talks.”

Hoffa claims that he “forced UPS into early negotiations” but it is clear that the big Teamster employers are eager for the chance to bargain when the no-strike contract clause binds the union and decreases union leverage.

Yellow’s Zollars says he will approach the Teamsters about early bargaining, but no date is set yet.

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