We have a legal right to a fair and informed vote on our national contracts. But our rights have not come without Teamsters for a Democratic Union taking on big battles.  Here is a summary of some key legal – and membership – victories involving our rights in national Teamster contracts.

We Won the Right to a Fair and Informed Vote

Bauman v Presser.  This case set a precedent for a “fair and informed” vote.  We obtained an injunction stopping a UPS national contract vote and requiring a do-over on fair terms.  As Bill Bauman (who was a steward in St Louis Local 688) stated at the time: “We won a democratic voice in collective bargaining for Teamster members.”   Without this victory, Hoffa-Hall could mail out proposed contracts or supplements for a vote without any prior information available or adequate time for debate among members.

We Won the Right to Vote on Supplements and Riders

Davey v Fitzimmons.  In this case we claimed that some supplements to the National Master Freight Agreement (NMFA) were so different, they required separate membership votes. We lost; the court gave the IBT leadership wide latitude to interpret the IBT constitution, and said we had to change the constitution if we wanted separate votes on supplements and riders. TDU Organizer Ken Paff was one of six plaintiffs.

We then built a movement to do just that, and succeeded at the 1991 IBT Convention; working closely with a good Teamster leader, then Harrisburg Local 776 president Tom Griffith, and with some fine work by reform delegates to the Convention to overcome the opposition of the IBT officials. That victory gave members more power to win better contracts.

Without this victory, the UPS contract would have been all over back in June.

We Won the Right to Observers at the Contract Vote Count

McCuiston v Hoffa. A consent order coming out of this carhaul contract case gave us the right to have rank and file observers at contract vote counts. Prior to this, the Hoffa administration handpicked a few observers – and not from all supplements and riders – who were not independent and kept secret from members what happened at the count.  This is a crucial step for transparency and fair contract votes.

We Won Majority Rule on Contracts

In the Harmon case, we challenged a national contract vote where 64% voted no, but the union imposed the “2/3 to reject a contract” rule.  We argued some members had been denied ballots, enough to possibly make it 2/3 No. Pressure built on the issue, and finally the IBT leadership conceded, and granted Teamster members majority rule, which is written into the IBT Constitution. This was a huge victory – UPS knew they only had to get 1/3 of voters to approve a contract. TDU fought to win majority rule for years, and it was finally won.

We Won the Right to Access all Proposed Supplements and Riders

In the Braxton case we won the right to get all tentative agreements for all supplements and riders, at the time of the “two-man” meeting, so that we can make them available to all members before voting. Prior to this victory, members only had access to their own supplement to the national contract and “highlights” or IBT PR. John Braxton was a UPS worker in Philadelphia who also worked for Teamster president Ron Carey. Now you can find the supplements and riders posted on www.TDU.org, and the IBT (in response to TDU) posts them as well.

We Won the Right to Quarterly Central States Fund Financials

When the Central States Pension and Health and Welfare Funds refused to give members access to quarterly financial and special-counsel reports which were filed with the court, we intervened and won in court. (The lead plaintiff, Tommy Burke, is a retired UPS driver in North Carolina.) The quarterly financial and analytical reports are available to members only on www.TDU.org.

Members of TDU are proud of this history. We believe these victories have made our union stronger, and given members a seat at the table. We thank the members who made this possible through their support, and we thank our great legal team.

You can help us make a lot more history with your support of Teamsters for a Democratic Union, the national network of Teamster reformers working together for a strong and democratic Teamsters Union.

A federal appeals court has affirmed a lower court's decision to dismiss a complaint from an Arkansas Best Corp. (ABFS) unit against the International Brotherhood of Teamsters union, YRC Worldwide Inc. (YRCW) and other parties for alleged violations of a collective bargaining agreement governing most unionized trucking companies.

Arkansas Best shares were down 7% to $24.73 in recent trading.

The trucking company's largest subsidiary, ABF Freight System Inc., first filed a suit in November 2010 against YRC, alleging the series of labor concessions by the Teamsters to help keep YRC afloat over the last few years violated the National Master Freight Agreement. The suit had previously been dismissed twice, but appealed both times. The Teamsters union represents workers at YRC and Arkansas Best.

In a regulatory filing Friday, ABF said it is disappointed in the U.S. Court of Appeals for the Eighth Circuit's ruling and that YRC received three rounds of concessions from the Teamsters union that ABF did not receive. ABF said is assessing the court's opinion and determining whether to pursue additional options.

ABF noted that, since 2010, it has negotiated its own separate five-year contract agreement with the Teamsters union, which was ratified by a majority of its Teamster employees in June. The lawsuit and recent contract negotiations were separate events, the company said.

Arkansas Best had been approached by YRC in late March about a deal that would have combined the only two big independent players with unionized drivers in the less-than-truckload sector, however it rejected the deal. Less-than-truckload carriers combine loads from multiple customers onto single trucks.

The industry was hit hard during the last recession, and debt-laden YRC narrowly avoided being pushed into bankruptcy as dozens of other firms were forced to close, but the market has in recent months stabilized.

Arkansas Best's stock has more than doubled this year to two-year highs.

UPDATED September 11, 2013: The largest supplement to the ABF agreement – the Central Region local cartage agreement – was rejected again, as was the Western Region office supplement. Updated Local-by-Local contract votes are posted here.

The other five supplements which were previously rejected were accepted in the second round of voting.

The IBT Constitution (Article XII, Section 2) provides that after two such rejections, "The master national negotiating committee shall return to the bargaining table and attempt to address the issues… in the event no new tentative agreement is reached, or if the members reject the new tentative agreement, the master committee shall conduct a strike authorization vote" in the supplemental area.

This should give the two groups some leverage to win changes to the agreement. But the Hoffa administration will likely try yet another "vote till you get it right" push. Hoffa and the Freight Division's game is to divide, discourage, and threaten members.

Maybe they can get a contract passed that way, but they cannot build Teamster power like this. They cannot organize. They cannot defend our pension plans.

The Record in Freight

They did nothing to increase Teamster bargaining power at ABF, misled members, then sold management's deal.

They lied to UPS Freight Teamsters and when the members rejected their deal, Hoffa-Hall went into hiding for over two months, and counting.

It looks like a secret deal with YRC may be in the works, and Hoffa cares more about his hedge-fund pal Harry Wilson than YRC Teamsters.

Worst of all, there is no plan to organize in freight or build Teamster power in trucking.

Teamster power is not just about numbers. It's about a strategy to leverage our power across the supply chain, at ports, plants, rail, trucking, warehousing and distribution, and use that power to grow and diversify our union.

Hoffa wouldn't recognize Teamster power if it stole his golf clubs. We need a new leadership with the vision and commitment to make it happen.

YRC Worldwide Inc.'s regional Reddaway less-than-truckload unit resumed normal operations on Monday after an unauthorized walkout by Teamsters at Southern California terminals in Fontana and Compton, the unit’s president said.

"The two terminals are fully operational now," T.J. O'Connor, president of Reddaway, told TT in an e-mail message, following the one-day action on Aug. 16.

The action wasn't sanctioned by the Teamsters Union, according to O'Connor's statement. The union didn't respond to requests for comment from TT.

The amount of freight affected by the walkout wasn't disclosed. The YRC regional unit official said that freight was rerouted around the affected terminals.

In the statement, Reddaway's O'Connor also said that an arbitration hearing that was scheduled before the walkout "will address related issues."

The company didn't say what the "related issues" were, but the statement noted that the union and the company had agreed to the arbitration process "long before" the walkout.

YRC is ranked No. 5 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers.

A work action surfaced Friday at two California trucking terminals owned by YRC Worldwide Inc.

Overland Park-based YRC issued a statement that acknowledged the event at its Reddaway regional trucking operation. The statement cited "an unauthorized, non-sanctioned isolated work action with local Teamsters" at Reddaway's facilities in Fontana and Compton, Calif.

Word of a walkout and pickets surfaced on a Teamsters online forum, where members voiced support for the Fontana and Compton workers.

Officials of the International Brotherhood of Teamsters declined to comment late Friday.

The statement said Teamsters union officials had been in touch with the company and "voiced their opposition" to the work action in California. It further said the union officials "assured Reddaway they are working to put an immediate stop to it."

Reddaway said that it was redirecting freight traffic around the two terminals to other nearby facilities and that customers would see no effect.

YRC narrowed its quarterly loss to 39.6 million on $1.243 billion revenue, compared with a net loss of $104.2 million on $1.251 billion revenue in the 2012 second quarter. Consolidated operating income decreased slightly from $15.5 million to $14.3 million, or by $1.2 million.  Operating income in 2013 included a $1.3 million loss on asset disposals compared to $6.5 million gain on asset disposals in 2012.

YRC, which has lost in excess of $2.6 billion in the last six years, has continually improved its long-term financial picture since James Welch replace Bill Zollars as CEO two years ago. Welch emphasized on a conference call that YRC is continuing to improve its long-term financial picture despite slightly higher costs associated with capital expenditures and huge operational changes YRC is rolling out designed for long-term financial improvements.

The Overland Park, Kan.-based company reported adjusted earnings before interest, taxes and debt (EBITDA) for the second quarter of 2013 of $74.7 million, a $4.6 million improvement over the $70.1 million adjusted EBITDA reported for the second quarter of 2012.  Included in adjusted EBITDA for the second quarter of 2013 is a $6.3 million charge related to the network optimization that was implemented at YRC Freight in May 2013.

Welch described the quarter as "steady progress" toward it long-term objective of regaining "a leadership position in the LTL industry."

In the second quarter, Welch said, YRC made investments in newly leased tractors and trailers, completed its rollout of 10,000 mobile handheld productivity devices for city drivers, and completed the second largest network optimization in YRC Freight history.  Welch called those expenditures "the first meaningful investment in equipment in four years."

YRC Freight posted a 1.5 percent improvement in revenue per shipment, an indication it is shedding unprofitable freight as its overall revenue declined by 2.9 percent. YRC's regional carriers (Holland, New Penn and Reddaway) had a 0.1 percent increase in revenue per shipment as operating revenue rose 3.5 percent.

YRC Freight reported an operating loss of $8.5 million and an operating ratio of 101.1, a slight decrease over the 2012 second quarter. YRC's regional carriers reported an operating profit of $25.2 million, a 10 percent increase over the year-ago quarter. The regional group posted a 94.3 OR, a performance Welch called in line with "market levels."

"While the regionals continue to excel in their markets, YRC Freight faced some headwinds during the implementation of the network optimization plan," Welch said.

YRC recorded a one-time charge of $6.3 million related to the network optimization, which Welch called "a small investment in what we anticipate will be approximately $25 to $30 million in annual savings."

Welch said 2012 was "a year of progress and 2013 is the year of performance, and we continue to deliver on that performance. Going forward, we remain focused on delivering incremental productivity improvements, consistent service and equally strong operational results. 

"We are confident in the position of our company and believe we have opportunity to grow the business, improve profitability and deliver high-quality service for our customers," stated Welch.

Wall Street was mixed on YRC's turnaround story. Its stock, which had zoomed from $5 per share in May to a high of nearly $37 in early July, fell 21 percent on the day of YRC's latest earnings announcement to around $22 per share. Independent analysts were much more bullish on YRC’s long-term future.

"I give credit to both union and management," Satish Jindel, principal of Pittsburgh-based SJ Consulting, told LM. "Management can only do so much. You have to rally the people and have them believe in the management. Management gave them a reason to believe."

Safety continues to improve at all YRC units. Its workers' compensation costs are falling as it continues to settle more claims than are filed. The net result is a reduction in the number of open claims and a reduction in associated liabilities and outstanding letters of credit supporting these programs, Welch said. 

In the second quarter, YRC reduced its outstanding letters of credit by $43 million, or 10% from $429 million to $386 million, according to Welch.

The most challenging part of YRC's turnaround remains its long-haul YRC Freight unit, which is the combination of the former Yellow Freight and Roadway units.  Last May, it implemented the second-largest network optimization plan in its history of our company, according to Jeff Rogers, president of YRC Freight.

"During implementation, our execution was hampered due to increased shipment volumes we were experiencing at the time," Rogers explained. "Service, operations and financial results were adversely affected as a consequence. 

"The good news is the optimization will increase density in the network, result in fewer touches of shipments, increase load averages and reduce line-haul miles.  The great news is the change is complete, service is moving back to pre-change levels, and this is absolutely in the best interest of our customers and our long-term success," said Rogers.

At June 30, YRC's liquidity, including cash, cash equivalents and availability under its $400 million asset-based loan facility (ABL), was $218.7 million.  The ABL borrowing base was $378.9 million as of June 30, 2013.  A year ago, that liquidity was $248.7 million.  For the six months ended June 30, 2013, cash used in operating activities was $18.2 million as compared to $16.6 million for the six months ended June 30, 2012.

"We were able to slightly improve liquidity during the second quarter despite increased cash outflows for capital expenditures, non-union pension payments, and unemployment tax payments," said Jamie Pierson, YRC's chief financial officer. "Our operational improvements and focus on working capital management continue to provide us with sufficient liquidity."

YRC has couple of debt maturities coming due in early and late 2014 and then again in early 2015.  Pierson said it recently retained Credit Suisse, in combination with its financial advisor, The MAEVA Group, to assist in developing "a broad range" of refinancing and recapitalization options.

"We have a number of constituents to consider and we are currently in the process of evaluating all alternatives," said Pierson.

August 20, 2013: Hoffa and the Freight Division are parroting management's line, aiming to divide, discourage and defeat members.

In early August, ABF Teamsters in the Central Region, Carolinas, Western Pa., and a couple of other supplements are voting again on the contract.

A number of Teamsters are speaking out against the concessionary deal. Some have made up leaflets comparing the concessionary deal to what Hoffa initially said they would bargain for.

The initial contract vote was mishandled and suspect, with members getting UPS ballots, no ballots, wrong ballot instructions and with the results being looked into presently.

Meanwhile Hoffa and the Freight Division are parroting management's line, aiming to divide, discourage and defeat members.

Maybe they can get a contract passed that way, but they cannot build Teamster power like this. They cannot organize. They cannot defend our pension plans.

The Record

They misled ABF Teamsters and sold management's deal.

They lied to UPS Freight Teamsters and when the members rejected their deal, Hoffa-Hall went into hiding for two months.

It looks like a secret deal with YRC may be in the works, and Hoffa cares more about his hedge-fund pal Harry Wilson than YRC Teamsters.

Worst of all, there is no plan to organize in freight or build Teamster power in trucking.

Teamster power is not just about numbers. It's about a strategy to leverage our power across the supply chain, at ports, plants, rail, trucking, warehousing and distribution, and use that power to grow and diversify our union.

Hoffa wouldn't recognize Teamster power if it stole his golf clubs. We need a new leadership with the vision and commitment to make it happen.

ABF Teamsters: Stand Up

"Teamsters at ABF in Chicago Heights voted overwhelmingly against the proposed contract. We know it will take all of us and many more Teamsters around the country to make sure the vote on supplements addresses the real issues. We're passing out a vote NO leaflet in the Heights but also sending it on to other terminals to build support.

"Somebody needs to stand up for our rights, and that somebody is you!"

Bret Subsits, ABF, Local 710, Chicago

Get to the TDU Convention

"We need to recapture the pride and solidarity that we had in the union when I started out. Freight Teamsters were the backbone of our union and we need to restore that power.

"The TDU convention is a great place to recharge your batteries and get informed and organized for the fights ahead. I'll be in Chicago and encourage all my brothers and sisters to join me."

Larry Capesius, ABF, Local 238, Cedar Rapids, Iowa

August 8, 2013: Reports indicate that YRC executives have asked Hoffa and Freight Director Tyson Johnson for a two-year extension to the present five-year deal, with a wage and pension freeze extending until 2017.  And Hoffa's appointee to YRC's board, Harry Wilson, is trying to broker the deal.

An August 7 press release, following YRC's second-quarter earnings announcement, referred to a potential refinancing of debt arranged by Credit Suisse and the Maeva Group. This announcement was tucked away under the heading "Other."

But Credit Suisse is apparently looking for a longer term deal with the Teamsters before they extend credit.

Maeva's CEO is Harry Wilson, who already has made over $5 million advising YRC, so Hoffa's appointment has been very lucrative for him. And he has millions of more reasons to keep the deals rolling.

Are informal talks being held with YRC about a contract deal? We think if such talks could lead to a proposed contract extension, then members should be informed and consulted. YRC members have sacrificed plenty to keep the company operating—they shouldn’t have to give away all their union rights to secret deals with hedge fund millionaires.

August 5, 2013: The US Court of Appeals for the District of Columbia has upheld all of the new Hours of Service regulations for DOT-regulated trucking operations, except one: the requirement of a 30-minute break during the first eight hours of work for short-haul drivers.

This is of particular note to some UPS package car drivers, who may want to take their lunch break at the end of a shift to escape some measure of forced overtime. The new Hours of Service regs had outlawed this practice, but now the court has restored it.

The new hours of service regulations make three changes: the 34-hour restart can only be used once per week; that 34-hour time off must include at least portions of two nights; and road drivers must take at least a 30-minute rest stop during the first eight hours on duty.

These changes primarily affect nonunion drivers, as few Teamsters are compelled to use the 34-hour restart, and most Teamster road drivers do take a rest or lunch stop.

The latest court ruling ends several years of legal wrangling over the HOS regulations. The American Trucking Associations was the primarily force behind seeking to kill the new regs.

The August 2 court decision is available here.

Arkansas Best Corp. of Fort Smith on Friday reported a profitable second quarter but said it continued to sustain losses in the first six months of the year on rising costs at its largest subsidiary, ABF Freight System Inc.

The publicly traded trucking firm (Nasdaq: ABFS) reported net income of $4.9 million, down 58 percent from the same quarter last year. Earnings per share reached 18 cents, down 59 percent from the same time last year.

Revenue $576.9 million, up 13 percent from $510.5 million during the same time last year.

The company missed analysts' expectations on earnings per share by a penny, but beat revenue predictions by more than $4 million.

But for the first half of the year, costs for salaries, wages and benefits at its LTL subsidiary ABF Freight offset improving revenue. Arkansas Best lost $8.5 million, or 33 cents per share, in the first six months of the year -- a wider loss than the $6.3 million, or 35 cents per share, loss the company reported in the comparable period.

Revenue in the first six months of 2013 reached $1.1 billion, up from $951.4 million during the same period in 2012.

“ABF was profitable during the quarter as it typically is during the second quarter, despite its continued high cost structure,” Arkansas Best CEO Judy McReynolds said. “However, year-to-date losses of $17 million at ABF continue to be unacceptable.”

Arkansas Best has spent much of the year working with the International Brotherhood of Teamsters on a new five-year labor contract for the company's 7,500 union employees. After months of back and forth, the two sides agreed on the National Master Freight Agreement in late June.

The contract includes an immediate 7 percent wage reduction, which the Teamsters said will "be entirely recouped by the fifth year of the five-year contract."

However, there are six supplemental contracts remaining to be ratified by Teamsters employees. Currently, the two sides are operating under a contract extension that ends this month. Ballots were mailed to Teamster employees earlier this week and are scheduled to be counted on Aug. 28.

On Friday, Arkansas Best said the higher labor costs have harmed its profitability. It said that for the first six months of 2013, Arkansas Best Freight's operating loss was $17.1 million compared to $14.2 million in the first half of 2012.

McReynolds said Friday that the deal with the Teamsters is "a milestone."

"Once this important process is concluded, it will represent a pivotal moment for Arkansas Best, as we will be able to turn our undivided attention to driving improved profitability at ABF, while continuing the expansion and growth of our emerging businesses," McReynolds said in a news release. "As our customers look to us for total solutions to their complex supply chain needs, we are now better positioned than at any time in our history to fulfill those requirements."

Recently the company announced internally the formation of ABF Logistics, an operating segment that will house intermodal and global shipping business and supply chain operations. McReynolds said the move allows for "a strategic reallocation of strong sales talent" into ABF Logistics and will allow "us to more effectively unleash the growth potential in each of these service offerings."

"We're exctied about the recent changes," McReynolds said.

Non-asset based operations within the company generated 23-percent of Arkansas Best revenue during the second quarter. All four of those businesses reported increased income.

Freight brokerage led the emerging businesses in revenue gains, with a 63-percent increase. Preventative maintenance saw a nine-percent revenue jump and almost 17-percent operating income boost for emergency and preventative maintenance operations.

"As we turn our undivided attention to restoring ABF's profitability and growing our emerging businesses with the right investment in resources and talent, we are now better positioned than at any time in our history to meet the end-to-end solutions needs of our customers," McReynolds said. "While the U.S. ecomonic outlook remains OK, but not great, we know that serving our customers in even better ways, with the right products and services, is the key to our company's success."