ABF NATIONAL MASTER FREIGHT AGREEMENT

ABF NATIONAL MASTER FREIGHT AGREEMENT

 

For the Period of

April 1, 20132018 through

March 31, 2018 June 30, 2023 covering:

 

Operations in, between and over all of the states, territories and possessions of the United States, and operations into and all of all contiguous territory. 

 

 

ABF FREIGHT SYSTEM, INC. hereinafter referred to as the “Employer” or “Company” or “ABF” and the TEAMSTERS NATIONAL FREIGHT INDUSTRY NEGOTIATING COMMITTEE representing Local Unions affiliated with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, and Local Union No.——— which Local Union is an affiliate of the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, agree to be bound by the terms and conditions of this Agreement.

 

 

ARTICLE 1.   PARTIES TO THE AGREEMENT

 

Section 1. Employers Covered 

NO CHANGE

 

Section 2. Unions Covered

NO CHANGE 

 

Section 3. Transfer of Company Title or Interest

NO CHANGE 

 

 

ARTICLE 2.   SCOPE OF AGREEMENT

 

Section 1. Master Agreement

NO CHANGE 

 

Section 2. Supplements to Master Agreement

NO CHANGE 

 

Section 3. Non-covered Units

NO CHANGE 

 

Card Check

NO CHANGE 

 

Additions to Operations: Over-The-Road and Local Cartage Supplemental Agreements

NO CHANGE 

 

Section 4.  Single Bargaining Unit

NO CHANGE 

 

Section 5.  Riders

NO CHANGE 

 

 

ARTICLE 3.   RECOGNITION, UNION SHOP AND CHECKOFF

 

Section 1.   Recognition 

NO CHANGE 

 

Union Shop

NO CHANGE 

 

Hiring

NO CHANGE 

 

State Law

NO CHANGE

 

Agency Shop

NO CHANGE 

 

Savings Clause

NO CHANGE 

 

Employer Recommendation

NO CHANGE 

 

Future Law

NO CHANGE

 

No Violation of Law

NO CHANGE 

 

Section 2.   Probationary and Casual Employees 

 

NO CHANGE 

 

NO CHANGE 

 

(7) a.  Casual Employment

NO CHANGE 

 

(7) b.  Regular Employment

NO CHANGE 

 

(c) Employment Agency Fees 

NO CHANGE 

 

Section 3.   Checkoff

NO CHANGE 

 

Section 4.   Work Assignment

NO CHANGE 

 

Section 5.  

NO CHANGE 

 

Section 6.  Electronic Funds Transfer 

NO CHANGE 

 

Section 7.  Utility Employee

 

The parties recognize the need for the Employers to compete effectively in a changing environment.  To this end, there shall be established a new position on the local cartage seniority list called a Utility Employee. The intent of the parties’ creation of the Utility Employee position is to generate additional job opportunities and enhance employee earnings, by enhancing the Employer’s ability to compete and grow. 

 

Subject to the approval of the National Utility Employee Review Committee, the Employer may establish Utility Employee positions at any facility at its discretion as-needed, and CDL-qualified road or local cartage employees may bid for Utility Employee positions in accordance with established terminal bidding procedures. All CDL-qualified drivers with the required endorsements shall have the opportunity to transfer to the local cartage operation, if necessary, and bid for open Utility Employee positions with full seniority rights.  There shall be no retreat rights for employees who transfer to the local cartage operation to bid an open Utility Employee position. For example, if a road driver bids into the Utility Employee position, he relinquishes his road seniority for bidding purposes and cannot return to the road driver classification, unless through a change of operations, or bid back rights consistent with the applicable Supplement. The Employer shall be permitted to assign a qualified local cartage employee to a Utility Employee position on a temporary basis when necessary to pursue business opportunities that become available, as long as the temporary assignment is made in seniority order and if senior employees do not accept the temporary positions, less senior employees are forced from the bottom of the seniority list.  Temporary vacancies in the Utility Employee position, for things such as sickness, vacations, leaves of absences, will be filled consistent with practices under the applicable Supplemental Agreement.

 

The Utility Employee shall work across all classifications as assigned and as necessary to meet business needs, and there shall be no restrictions on the type of freight or work handled.  A Utility Employee’s duties during a tour of duty may, at his/her home terminal, include performing Utility-related dock work, P&D (local cartage) work, hostling/yard work (drop & hooks), and any driving work. At larger facilities where the Employer utilizes Utility Employees and there is more than Utility work performed, the Employer will designate a specific area on the dock where freight to be handled by Utility Employees will be staged.  Non-utility freight will be staged at a designated area and the employees at the destination terminal will handle the non-utility freight. 

 

A Utility Employee shall perform all local cartage functions at his home terminal. Notwithstanding anything in this Agreement or any Supplemental Agreement to the contrary, Utility Employees also may be required to work across Local Union jurisdictional lines.  It is not the intent to use Utility Employees to perform local peddle runs or P&D work outside their Local Union’s jurisdiction.  At away terminals, a Utility Employee may perform Utility-related dock work, hostling and drop and hooks on his/her own equipment. A Utility Employee shall fuel his/her own equipment at away terminals, if there are no fuelers available. All Utility Employees shall be returned to his home domicile at the end of his shift, absent bona fide extenuating circumstances, in which case they shall be paid on all hours.

 

The Employer shall pay each Utility Employee an hourly premium of $1.00 per hour over the highest rate the Employer pays to local cartage drivers under the Supplemental Agreement covering the Utility Employee’s home domicile.  Employees in progression who bid into Utility Employee positions or individuals the Employer hires into Utility Employee positions shall complete the progression for local cartage drivers outlined in the applicable Supplemental Agreement.  A Utility Employee in progression shall receive the hourly premium in addition to the Utility Employee’s progression rate.

 

A Utility Employee’s work week shall consist of any four (4) ten (10) hour or five (5) eight (8) hour consecutive days starting Sunday, Monday, or Tuesday, subject to a forty (40) hour guarantee during that period.  With four (4) ten (10) hour days, the Utility Employee shall have three (3) consecutive days off and with five (5) eight (8) hour days the Utility Employee shall have two (2) consecutive days off.  The Employer may establish multiple start times bid by Utility Employees and may slide such start times on a daily basis by either thirty (30) minutes before or thirty (30) minutes after the bid start times.

 

The parties recognize that most, if not all locations will have Utility Employees regardless of facility size, geographic and/or service area.  Subject to the approval of the National Utility Employee Review Committee or the Committee Chairman or their designees, the Employer may establish and modify Utility Employee positions and bids without the approval of a change of operations or other Union approval.  All bids shall be offered in seniority order, and, if senior employees do not bid open positions, less senior employees shall be forced from the bottom of the seniority list.  

 

In the event the Employer’s proposed use of a Utility Employee position causes a transfer, change or modification of any driver’s present terminal, breaking point or domicile, the proposed change shall be submitted to a National Utility Employee Review Committee comprised of three representatives designated by the Vice President of TMI Employee Relations for ABF and three representatives designated by the Chairman of TNFINC. The Vice President of TMI Employee Relations for ABF or his designee and the Chairman of TNFINC or his designee shall be the TMI Company and the TNFINC Chairmen of the National Utility Review Committee. The

National Utility Employee Review Committee shall establish rules of procedure to govern the manner in which proposed Utility Employee operational changes are to be heard. 

 

The National Utility Employee Review Committee shall have the authority to determine the seniority application of employees affected by the operational change and such determination shall be final and binding.  No proposed operational change will be approved which violates this Agreement.  In the event the National Utility Employee Review Committee is unable to resolve a matter, the case shall be submitted to the National Review Committee on an expedited basis.  Neither the Union nor the Employer shall unreasonably delay the scheduling or completion of any requested meeting, or the submission of any dispute to the National Review Committee.  In no event shall a Utility Employee operational change hearing be held more than fifteen (15) business days after the Employer meets with the affected Local Unions to discuss the written operational change proposal.

 

Any grievance concerning the application or interpretation of Article 3, Section 7 shall be first referred to the National Utility Employee Review Committee for resolution.  If the National Utility Employee Review Committee is unable to reach a decision on an interpretation or grievance, the issue will be referred to the National Grievance Committee. The National Utility Employee Review Committee shall have jurisdiction over alleged violations of seniority rights in the bidding of the Utility Employee positions, issues regarding the utilization of the Utility Employee position consistent with this Section, and issues regarding the seniority rights of employees bidding into the Utility Employee position. 

 

Subject to the approval of the National Utility Employee Review Committee, the Employer may establish the number of Utility Employee positions at any location.

 

The parties agree that nothing in this Article 3, Section 7 shall alter the Employer’s ability to engage in layoffs in accordance with the layoff provisions of the applicable Supplemental Agreement. In the event a Utility Employee is laid off, the Employer may re-bid that position in accordance with seniority provisions of the applicable Supplemental Agreement.

 

 

ARTICLE 4.   STEWARDS

NO CHANGE 

 

 

ARTICLE 5. 

 

Section 1.  Seniority Rights 

NO CHANGE

 

Section 2.   Mergers of Companies-General 

NO CHANGE

 

Combining of Terminals or Operations as a Result of Merger of Companies 

NO CHANGE

 

Active Seniority List    

NO CHANGE

 

Layoff Seniority list

NO CHANGE

 

Temporary Authority

NO CHANGE

 

Purchase of Rights

NO CHANGE

 

Exclusive Cartage Operations

NO CHANGE

 

Committee Authority

NO CHANGE

 

Section 3.   Intent of Parties 

NO CHANGE

 

Section 4.   Equipment Purchases 

NO CHANGE

 

Highest Rates Prevail

NO CHANGE

 

Cutting Seniority Board

NO CHANGE

 

Posting Seniority List

NO CHANGE

 

Section 5.   Work Opportunity 

NO CHANGE

 

Section 6.  Overtime

NO CHANGE

 

 

ARTICLE 6.

 

Section 1.  Maintenance of Standards 

NO CHANGE

 

Local Standards

NO CHANGE

 

Individual Employer Standards

NO CHANGE

 

General

NO CHANGE

 

Section 2.  Extra Contract Agreements    

NO CHANGE

 

Section 3.  Workweek Reduction    

NO CHANGE 

 

Section 4.  New Equipment    

NO CHANGE 

 

 

ARTICLE 7.  LOCAL AND AREA GRIEVANCE

MACHINERY 

 

Section 1.  

(a) Provisions relating to local, state and area grievance machinery are set forth in the applicable Supplements to this Agreement. 

 

Each Supplemental Agreement shall provide for a Regional Joint Area Review Committee. The Committee shall review and consider any case deadlocked by the Regional Joint Area Committee. The Regional Joint Area Review Committee shall consist of the Freight Coordinator from the applicable Region or a designee of the TNFINC Chairman and a designee of the Executive Director of TMI.  The Committee shall have the authority to resolve any such deadlocked case either by review of the evidence presented to the Regional Joint Area Committee or by rehearing the case. The decisions of the Committee shall be final and binding. In the event the Committee is unable to resolve the deadlock, the case shall be referred to the National Grievance Committee. 

 

Unless otherwise indicated in writing to TMI and TNFINC by a Supplemental Negotiating Committee prior to ratification of this Agreement, there shall be no arbitration of discharge and suspensions. 

 

(a) The provisions provided herein shall replace and supersede prior language and Provisions in the individual supplements with regards to local, state and area grievance machinery. 

 

Each IBT Region shall provide for a Joint Area Committee, comprised of the Supplements in that Geographic Region, that shall meet on a quarterly basis at a location agreed to by the Employer and Regional Freight Coordinator.  In addition the Joint Area Committee may be required to meet at a Supplemental location for a special hearing of out of service cases, no later than thirty (30) days after the request is received by the administrator of the grievance process.    

 

The Committee shall be made up of Local Union representatives from the Supplement involved and ABF Employee Relations Personnel or their designees.  It is agreed that for a Committee to hear a case there shall be an equal number of Employer Committee members and Union Committee members sitting, not to exceed three (3) each and not less than two (2).  Local Union representatives who are appearing as presenters or witnesses for the Local Union involved in a proceeding before a Committee, will be ineligible to act as a member of that Committee.  The Company Panel for cases to be heard at any level shall consist of not less than two (2) ABF Employee Relations Personnel or their designees.    

 

In the event a grievance matter is deadlocked at the Joint Area Committee level, it shall be referred to the appropriate ABF Regional Committee for handling or as provided for in the Joint Area Committee rules of procedure for discharges and suspension.  If not resolved at that level it shall be referred to the ABF Review Committee or to the ABF National Grievance Committee.    

 

All grievances arising under the provisions of the Master Agreement (Articles 1-39) shall be filed directly with the appropriate Regional Joint Area Committee. The Regional Joint Area Committee shall have the authority to render a final and binding decision or direct the grievance to the appropriate lower level committee for hearing if the grievance is not properly claimed under the provisions of the Master Agreement. The Regional Joint Area Committee must hear and decide such cases within ninety (90) days of the filing of the grievance. Grievances arising under Article 9 Protection of Rights, Article 29, Sections 1 or 2(a) and (b) - Substitute Service and Article 32, Subcontracting shall be expeditiously processed and may be heard at either regularly scheduled or specially called hearings. A grievance may be filed by any Region whose members are adversely affected by an alleged violation of Article 32, Section 4(b) occurring within its jurisdiction. 

 

Each Supplemental Agreement shall provide for a Regional Joint Area Review Committee. The Committee shall review and consider any case deadlocked by the Regional Joint Area Committee. The Regional Joint Area Review Committee shall consist of the Freight Coordinator from the applicable Region or a designee of the TNFINC Chairman and a designee of the Vice President of Employee Relations for ABF Freight.  The Committee shall have the authority to resolve any such deadlocked case either by review of the evidence presented to the Regional Joint Area Committee or by rehearing the case. The decisions of the Committee shall be final and binding. In the event the Committee is unable to resolve the deadlock, the case shall be referred to the National Grievance Committee. 

 

It is mutually agreed that the procedures for processing complaints concerning matters of highway and equipment safety shall be incorporated in the applicable Supplemental Agreement, in accordance with the guidelines established by the ABF National Master Freight Safety, Health and Equipment Committee provided for in Article 16. 

 

Special Regional Joint Area Committees shall also be created in compliance with the provisions of Article 35, Sections 3 and 4. The procedure set forth in the grievance machinery and in the national grievance procedure may be invoked only by the authorized Union representative or the Employer representative. Authorized representatives of the Union and/or Employer may file grievances alleging violation of this Agreement, under local grievance procedure, or as provided herein, unless provided to the contrary or otherwise mutually agreed in the Supplemental Agreement and/or respective committee rules of procedure. Time limitations regarding the filing of grievances, if not set forth in the respective Supplemental Agreements, must appear in the Rules of Procedure of the various grievance committees and shall apply equally to the Employer and employees. 

 

The Rules of Procedure of the various committees established under the Agreement shall be subject to the review and approval of the ABF National Grievance Committee. 

 

In order that each committee may operate quickly and efficiently, the parties agree that a person or service provider shall be selected and designated to serve as Secretary. Each Panel shall have its own Secretary. The Secretary shall perform only the duties assigned to him/her by the Panel. The Secretary shall docket cases, prepare the agenda and mail/email a copy prior to the scheduled meeting of the Panel to each member of the Panel, the Employer and Local Unions whose case appears on the agenda. The Secretary shall attend the meeting to prepare and keep the minutes and mail/email copies of the minutes to the members of the Panel and shall also mail/email copies of the decision of the Panel to all ABF representatives and Local Unions who are parties to this Agreement. 

 

If a Local Union dockets a case at a joint area committee, the Company and the Union shall both be required to pay a seventy-five ($75.00) fifty ($50.00) dollar docketing or hearing fee. The expenses for operating a joint area committee shall be borne equally by all the covered Local Unions on a pro rata basis and Company operations which are covered by this Agreement. The parties reserve the right to modify the above fees or impose an assessment, by mutual consent. 

 

(b) All grievances arising under the provisions of the Master Agreement (Articles 1-39) shall be filed directly with the appropriate Regional Joint Area Committee. The Regional Joint Area Committee shall have the authority to render a final and binding decision or direct the grievance to the appropriate lower level committee for hearing if the grievance is not properly claimed under the provisions of the Master Agreement. The Regional Joint Area Committee must hear and decide such cases within ninety (90) days of the filing of the grievance. Grievances arising under Article 9 - Protection of Rights, Article 29, Sections 1 or 2(a) and (b) - Substitute Service and Article 32, Subcontracting shall be expeditiously processed and may be heard at either regularly scheduled or specially called hearings. A grievance may be filed by any Region hose members are adversely affected by an alleged violation of Article 32, Section 4(b) occurring within its jurisdiction. 

 

(c) It is mutually agreed that the procedures for processing complaints concerning matters of highway and equipment safety shall be incorporated in the applicable Supplemental Agreement, in accordance with the guidelines established by the ABF National Master Freight Safety, Health and Equipment Committee provided for in Article 16. 

 

Special Joint Area Committees shall also be created in compliance with the provisions of Article 35, Sections 3 and 

4. 

 

The procedure set forth in the local, state and area joint area and regional joint area grievance machinery and in the national grievance procedure may be invoked only by the authorized Union representative or the Employer representative. Authorized representatives of the Union and/or Employer may file grievances alleging violation of this Agreement, under local this grievance procedure, or as provided herein, unless provided to the contrary or otherwise mutually agreed in the Supplemental Agreement and/or respective committee rules of procedure.  Time limitations regarding the filing of grievances, if not set forth in the respective Supplemental Agreements, must appear in the Rules of Procedure of the various grievance committees and shall apply equally to the Employer and employees.

 

The Rules of Procedure of the various committees established under the Agreement shall be subject to the review and approval of the National Grievance Committee.

 

Section 2.  Grievant’s ▇▇▇▇ of Rights 

NO CHANGE 

 

Section 3. 

 

All Local, State and Area Grievance Committees established under Supplemental Agreements shall revise their Rules of Procedure to include the “Grievant’s ▇▇▇▇ of Rights” set forth in Section 2 above and shall submit their revised Rules of Procedure to the National Grievance Committee for approval no more than ninety (90) days after the effective date of this Agreement. The National Grievance Committee may revise, delete or add to the Rules of Procedure for a Supplemental Grievance Committee in any manner necessary to ensure conformity with the purposes and objectives of the Grievant’s ▇▇▇▇ of Rights. The decisions of the National Grievance Committee in this regard shall be final and binding.

 

Section 4.  

 

Discharge cases shall be docketed and scheduled to be heard at the next regularly scheduled Joint Area State/Supplemental Committee meeting. In addition the Joint Area Committee may be required to meet at a Supplemental location for a special hearing of out of service cases, no later than thirty (30) days after the request is received by the administrator of the grievance process. 

 

Section 5.  Timely Payment of Grievances 

NO CHANGE 

 

Section 6.  

NO CHANGE

 

 

ARTICLE 8.   NATIONAL GRIEVANCE PROCEDURE

 

Section 1.   

 

All grievances or questions of interpretations arising under this ABF National Master Freight Agreement or Supplemental Agreements thereto shall be processed as set forth below.

 

 

If upon the completion of the grievance procedure of the Supplemental Agreement the matter is deadlocked, the case shall be immediately forwarded to both the Employer and Union secretaries of the National Grievance Committee, together with all pertinent files, evidence, records and committee transcripts.

 

Any request for interpretation of the ABF National Master Freight Agreement shall be submitted directly to the Regional Joint Area Committee for the making of a record on the matter, after which it shall be immediately referred to the National Grievance Committee. Such request shall be filed with both the Union and Employer secretaries of the National Grievance Committee with a complete statement of the matter.

 

 

Cases deadlocked by the National Grievance Committee shall be referred as provided in Section 2(b) below. Procedures relating to such referrals shall be included in the Rules of Procedure of the National Grievance Committee.

 

The Employer may request the co-chairmen of the National Grievance Committee to appoint and convene a joint Employer and Union Committee which shall have the authority to approve uniform dispatch procedures and rules which shall apply to the individual company’s over-the-road operations.

 

No Employer signatory to this Agreement shall be permitted to have its own grievance procedure. 

 

Section 2.   

 

 

 

 

 

 

 

 

Section 3.  Work Stoppages 

NO CHANGE 

 

Section 4.  

 

(a) It is mutually agreed that the Local Union will, within two (2) weeks of the date of the signing of this Agreement, serve upon the Employer a written notice listing the Union’s authorized representatives who will deal with the Employer, make commitments for the Local Union generally and, in particular, those individuals having the sole authority to act for the Local Union in calling or instituting strikes or any stoppages of work which are not in violation of this Agreement. The Local Union may from time to time amend its listing of authorized representatives by certified mail (or confirmed e-mail). The Local Union shall not authorize any work stoppages, slowdown, walkout, or cessation of work in violation of this Agreement. It is further agreed that in all cases of an unauthorized strike, slowdown, walkout, or any unauthorized cessation of work which is in violation of this Agreement the Union shall not be liable for damages resulting from such unauthorized acts of its members.

 

In the event of a work stoppage, slowdown, walkout or cessation of work, not permitted by the provisions of Article 8, Section 3(a), (b), or (c) alleged to be in violation of this Agreement, the Employer shall immediately send a wire or fax to the Freight Coordinator in the appropriate Regional Area and to the Chairman of TNFINC to determine if such strike, etc., is authorized.

 

No strike, slowdown, walkout or cessation of work alleged to be in violation of this Agreement shall be deemed to be authorized unless notification thereof by telegram has been received by the Employer and the Local Union from such Regional Area. If no response is received by the Employer within twenty-four (24) hours after request, excluding Saturdays, Sundays, and holidays, such strike, etc., shall be deemed to be unauthorized for the purpose of this Agreement.

 

In the event of such unauthorized work stoppage or picket line, etc., in violation of this Agreement, the Local Union shall immediately make every effort to persuade the employees to commence the full performance of their duties and shall immediately inform the employees that the work stoppage and/or picket line is unauthorized and in violation of this Agreement. The question of whether employees who refuse to work during such unauthorized work stoppages, in violation of this Agreement, or who fail to cross unauthorized picket lines at their Employer’s premises, shall be considered as participating in an unauthorized work stoppage in violation of this Agreement may be submitted to the grievance procedure, but not the amount of suspension herein referred to.  

 

It is specifically understood and agreed that the Employer during the first twenty-four (24) - hour period of such unauthorized work stoppage in violation of this Agreement, shall have the sole and complete right of reasonable discipline, including suspension from employment, up to and including thirty (30) days, but short of discharge, and such employees shall not be entitled to or have any recourse to the grievance procedure. In addition, it is agreed between the parties that if any employee repeats any such unauthorized strike, etc., in violation of this Agreement, during the term of this Agreement, the Employer shall have the right to further discipline or discharge such employee without recourse for such repetition.  After the first twenty-four (24) - hour period of an unauthorized stoppage in violation of this Agreement, and if such stoppage continues, the Employer shall have the sole and complete right to immediately further discipline or discharge any employee participating in any unauthorized strike, slowdown, walkout, or any other cessation of work in violation of this Agreement, and such employees shall not be entitled to or have any recourse to the grievance procedure. The suspension or discharge herein referred to shall be uniformly applied to all employees participating in such unauthorized activity. The Employer shall have the sole right to schedule the employee’s period of suspension.

 

The International Brotherhood of Teamsters, the Teamsters National Freight Industry Negotiating Committee, Joint Councils and Local Unions shall make immediate efforts to terminate any strike or stoppage of work as aforesaid which is not authorized by such organizations, without assuming liability therefore. For and in consideration of the agreement of the International Brotherhood of Teamsters, Teamsters National Freight Industry Negotiating Committee, Joint Councils and Local Unions affiliated with the International Brotherhood of Teamsters to make the aforesaid efforts to require Local Unions and their members to comply with the law or the provisions of this Agreement, including the provisions limiting strikes or work stoppages, as aforesaid, the Employer who is party hereto agrees that it will not hold the International Brotherhood of Teamsters, the Teamsters National Freight Industry Negotiating Committee, Joint Councils and Local Unions liable or ▇▇▇ them in any court or before any administrative tribunal for undertaking such efforts to terminate unauthorized strikes or stoppages of work as aforesaid or for undertaking such efforts to require Local Unions and their members to comply with the law or the provisions of this Agreement, or for taking no further steps to require them to do so. It is further agreed that the Employer will not hold the International Brotherhood of Teamsters, Teamsters National Freight Industry Negotiating Committee, Joint Councils or Local Unions liable or ▇▇▇ them in any court or before any administrative tribunal for such unauthorized work stoppages alleging condonation, ratification or assumption of liability for undertaking such efforts to terminate strikes or stoppages of work, or requiring Local Unions and their members to comply with the law or the provisions of this Agreement.

 

The provisions of this Article shall continue to apply during that period of time between the expiration of this Agreement and the conclusion of the negotiations or the effective date of the successor Agreement, whichever occurs later, except as provided in Article 39.  It is understood and agreed that failure by the International Brotherhood of Teamsters, Teamsters National Freight Industry Negotiating Committee, and/or Joint Councils to authorize a strike by a Local Union shall not relieve such Local Union of liability for a strike authorized by it and which is in violation of this Agreement.

 

(b) The question of whether the International Union, Teamsters National Freight Industry Negotiating Committee, Joint Council or Local Union have met its obligation set forth in the immediately preceding paragraphs, or the question of whether the International Union, Teamsters National Freight Industry Negotiating Committee, and Joint Council or the Local Union, separately or jointly, participated in an unauthorized work stoppage, slowdown, walkout or cessation of work in violation of this Agreement by calling, encouraging, assisting or aiding such work stoppage, etc., in violation of this Agreement, or the question of whether an authorized strike provided by Article 8, Section 3(a), (b) or (c) is in violation of this Agreement, or whether the Employer engaged in a lockout in violation of this Agreement, shall be submitted to the grievance procedure at the national level, prior to the institution of any damage suit action. When requested, the co-chairmen of the National Grievance Committee shall immediately appoint a subcommittee to develop a record by collecting evidence and hearing testimony, if any, on the questions of whether the International Union, Teamsters National Freight Industry Negotiating Committee, Joint Council or Local Union have met its obligations as aforesaid, or of Union Participation or

Employer lockout in violation of this Agreement. The record shall be immediately forwarded to the National Grievance Committee for decision. If a decision is not rendered within thirty (30) days after the co-chairmen have convened the National Grievance Committee, the matter shall be considered deadlocked.

 

A majority decision of the National Grievance Committee on the questions presented as aforesaid shall be final and binding on all parties. If such majority decision is rendered in favor of one (1) or more of the Union entities, or the Employer, in the case of lockout, no damage suit proceedings on the issues set forth in this Article shall be instituted against such Union entity or such Employer. If, however, the National Grievance Committee is deadlocked on the issues referred to in this subsection 4(b), the issues must be referred to the National Review Committee for resolution prior to either party instituting damage suit proceedings. If the National Review Committee decides that a strike was unlawful, it shall not have the authority to assess damages. Except as provided in this subsection 4(b), agreement to utilize this procedure shall not thereafter in any way limit or constitute a waiver of the right of the Employer or Union to commence damage suit action. However, the use of evidence in this procedure shall not waive the right of the Employer or Union to use such evidence in any litigation relating to the strike or lockout, etc., in violation of this Agreement. There shall not be any strike, slowdown, walkout, cessation of work or lockout as a result of a deadlock of the National Grievance Committee on the questions referred to under this subsection 4(b) and any such activity shall be considered a violation of this Agreement.

 

 

 

Section 5.    

NO CHANGE 

 

Section 6.  Change of Operations  

 

Change of Operations Committee 

 

(a) Present terminals, breaking points or domiciles shall not be transferred, changed or modified without the approval of an appropriate Change of Operations Committee. Such Committee shall be appointed in each of the Regional Areas, equally composed of Employer and Union representatives. The Change of Operations Committee shall have the authority to determine the seniority of the employees affected and such determination shall be final and binding.

 

In the event a proposed change of operations includes the establishment of either a new or satellite terminal as a “combination” facility with a common city driver and dock seniority roster, when such change of operations results in the relocation or movement of city drivers and dock employees from an existing terminal recognizing separate (split) seniority rosters for city drivers and dock employees, the Change of Operations Committee shall have the authority to determine the conditions under which such a combination facility may be established, including but not limited to, the number of city drivers and dock employees who qualify, be allowed to follow the work to the new or satellite combination terminal, the implementation of training programs to qualify dock employees as city drivers and the seniority right of affected employees to either return to the “mother” terminal and/or claim additional driving positions at the satellite terminal within reasonable time periods following the establishment of such combination terminal, as determined by the Committee. Existing terminals that recognize separate city driver and dock seniority rosters (split terminals) shall not be converted to “combination” terminals unless and until such time as a majority of those affected employees agree to such conversion, in which case the Change of Operations Committee shall have the authority to determine the conditions under which such conversion shall be implemented.

 

Such Committee, however, shall observe the Employer’s right to designate domiciles and the operational requirements of the business.  Where the Union raises the question as to whether or not certain proposed runs of excessive length can be made, the Employer must be prepared to submit objective evidence including DOT certification or logs and tapes that such runs have been tested and were made within the DOT hours of service regulations. Individual employees shall not be redomiciled more than once during the term of this Agreement as the result of an approved change of operations unless a merger, purchase, sale, acquisition or consolidation of employers is involved, or unless there is proven economic need as determined by the Change of Operations Committee based on factual evidence presented.

   

Where there is no objection from the involved Local Unions to a proposed change of operations (as evidenced in a letter or e-mail from the involved Local Unions) and the matter is approved by both the Union’s Regional Coordinator and Union’s National Freight Director, the Company may implement the change prior to a formal hearing.  The Change of Operations

Committee would maintain jurisdiction for a period of twelve (12) months following the implementation to address any disputes concerning the implementation. 

 

Pension and health & welfare contributions paid on behalf of a redomiciled employee shall be paid to the Funds to which the contributions were made prior to the employee’s change of domicile, and the decisions of the Change of Operations Committee shall so specify. This Section does not apply to employees who voluntarily transfer to new domiciles, unless such transfer is a result of a Change of Operations Committee decision. Any dispute concerning the appropriate fund for the Employer contribution on behalf of a redomiciled employee, pursuant to a Change of Operations Committee decision, shall be referred to the National Grievance Committee. The decision of the National Grievance Committee shall to the extent permitted by law, be final and binding on all affected parties, including the Trust Funds. 

 

The Change of Operations Committee shall also have jurisdiction for a period of twelve (12) months following the opening of a new terminal to consider the redomicile of employees who are laid off as a direct result of such opening of a terminal. The Committee shall also have jurisdiction over the closing of a terminal in regard to seniority, as well as to determine the conditions under which freight may or may not be interlined into the area of a vacated operations when necessary to retain major customers, including mandating the use of union carriers where available. In no event will the Employer be granted the authority to vacate a facility and interline the freight on a non-union subsidiary of the parent company.  

 

The above shall not apply within a twenty-five (25)-mile radius.  

 

The Change of Operations Committee shall have the authority to require a definition of primary and shared lanes, where applicable. 

 

The Change of Operations Committee shall not grant the Employer authority to relocate U.S. operations, work, or terminals to Mexico. 

 

Change of Operations Committee Procedure

NO CHANGE 

 

Moving Expenses

 

(c) The Employer shall pay reasonable expenses to demount and remount an employee’s mobile home, if used as his/her residence and in such instance shall pay normal expenses to move such mobile home, including the use of other modes of transportation where required by law. However, it is mutually understood that the cost of such move shall not exceed nine thousand dollars ($9,000.00) per move. Commencing April 1, 2004 and every April 1st thereafter under this agreement, this amount will be increased by the prior year’s average annual increase in the CPI-W, U.S. city average, Housing, Household Operations expenditure category titled “Moving, storage, freight expense”. A decrease in the percent change in the Index will not result in a decrease of the mobile home moving allowance once established. In the event the index is no longer published by BLS, the parties will agree to meet and find a substitute Index as an escalator.

 

Where an employee is required to transfer to another domicile in order to follow employment as a result of a change of operations, the Employer shall move the employee and assume the responsibility for proven loss or damage to household goods due to such move, including insurance against loss or damage. Should any employee possess household items of unusual or extraordinary value which will be included in the move, such items shall be declared and an appraised value determined prior to the move. The Employer shall provide packing materials for the employee’s household goods when requested or at the employee’s request pay all costs and expenses of moving such household goods, including packing.

 

An employee shall have a maximum of one (1) year to move in accordance with the provisions of an approved change of operations unless, prior to the expiration of such year, he/she requests, in writing, an extension for a reasonable period of time due to an unusual or special problem. The Employer shall provide lodging for the employee at the point of redomicile, not to exceed ninety (90) calendar days, and in addition, shall reimburse the employee forty sixty-one cents (40 61¢) per mile to transport one two  (1  2) personal automobiles to the new location.

 

The Employer shall not be responsible for moving expenses if the employee changes his/her residence as a result of voluntary transfer.

 

None of the Employer obligations set forth in this Subsection (c) - Moving Expenses shall apply to transfers of domiciles within a fifty (50) - mile radius.

 

Change of Operations Seniority

NO CHANGE 

 

Closing, Partial Closing of Terminals-Transfer of Work

NO CHANGE 

 

Closing of Terminals-Elimination of Work

NO CHANGE 

 

Layoff

NO CHANGE

 

Opening of Terminals

NO CHANGE 

 

Definition of Terms

NO CHANGE 

 

Qualifications and Training

NO CHANGE 

 

Intent of Parties

NO CHANGE 

 

Section 7.  

NO CHANGE 

 

Section 8.  Sleeper Cab Operations 

NO CHANGE

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

F.  ▇▇▇▇-Off Procedure For Non-Scheduled Sleeper Cab Drivers 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

 

ARTICLE 9.   PROTECTION OF RIGHTS

 

Section 1. Picket Lines: Sympathetic Action

NO CHANGE 

 

Section 2. Struck Goods

NO CHANGE 

 

Section 3.

NO CHANGE 

 

Section 4.

NO CHANGE 

 

 

ARTICLE 10.   LOSS OR DAMAGE 

 

Section 1.   

NO CHANGE 

 

Section 2.  

NO CHANGE 

 

 

ARTICLE 11.   BONDS AND INSURANCE 

 

Section 1.  

NO CHANGE 

 

Section 2.  Corporate Owned Life Insurance 

NO CHANGE 

 

 

ARTICLE 12.  UNIFORMS 

 

Before the Employer purchases uniforms, it must present a sample of the material for the uniforms to the Union for approval.  If the sample material type is not used in the finished uniforms, the Union employees are under no obligation to wear the uniforms.  The Union’s approval shall not be unreasonably withheld.  The Employer agrees that if any employee is required to wear any kind of uniform as a condition of his/her continued employment, such uniform shall be furnished and maintained by the Employer, free of charge, at the standard required by the Employer.  Said uniforms shall be made in the United States by union vendors, if possible, and will have the Teamster emblem appropriately applied and, as uniforms are replaced after date of ratification, an American flag on the left shoulder.  

 

The Employer shall replace all clothing, glasses, hearing aids and/or dentures not covered by company insurance or worker’s compensation which are destroyed or damaged in a wreck or fire with company equipment.

 

The Employer has the right to establish and maintain reasonable standards for wearing apparel and personal grooming. 

 

The following provisions shall govern the wearing of shorts, unless the Employer and Local Union has a prior existing practice: 

 

During the period May 1, through September 30, employees shall be allowed to wear appropriate Employer approved polo shirts and shorts, subject to the guidelines set forth herein. Appropriate shorts shall be defined as walking or Bermuda style shorts with at least two (2) pockets and belt loops and which cannot be shorter than two (2) inches above the knee, properly hemmed at the bottom and of a conservative basic solid color, (black, blue, ▇▇▇▇▇ or green). Socks and appropriate foot wear must be worn at all times.

 

Short shorts, cut offs, unhemmed, athletic, gym, biking, spandex and calf length shorts shall not be allowed.

 

 

ARTICLE 13.  PASSENGERS

NO CHANGE 

 

 

ARTICLE 14.  COMPENSATION CLAIMS 

Section 1. Compensation Claims

NO CHANGE 

Section 2. Modified Work 

 

An active employee, who is injured on the job, qualifies for workers’ compensation benefits and is subsequently laid off, will continue to receive compensation payments and benefits for the period provided by his/her supplement.

 

 

Employees who need additional medical and/or physical therapy may go for such treatments during scheduled hours for modified work whenever practical and reasonable. 

 

Employees who have been prescribed medications by a doctor where such medications prevent them from driving to and from work or where the treating physician certifies that the injury itself prevents the employee from driving to and from work, shall not be scheduled for modified duty. 

 

 

It is understood and agreed that those employees who, consistent with professional medical evaluations and opinion, may not be expected to receive an unrestricted medical release, or whose injury has been medically determined to be permanent and stationary, shall not be eligible to participate in a modified work program.  

 

In the event of a dispute related to conflicting medical opinion, such dispute shall be resolved pursuant to established worker’s compensation law and/or the method of resolving such matters as outlined in the applicable Supplemental Agreement. In the absence of a provision in the Supplemental Agreement, the following shall apply:

 

When there is a dispute between two (2) physicians concerning the release of an employee for modified work, such two (2) physicians shall immediately select a third (3rd) neutral physician within seven (7) days, who shall possess the same qualifications as the most qualified of the two selecting physicians, whose opinion shall be final and binding on the Employer, the Union and the employee. In the event the availability of a qualified physician is in question, the Local Union and the Company shall resolve such matter by selecting the third (3rd) physician whose opinion shall be final and binding. The expense of the third (3rd) physician shall be equally divided between the Employer and the Union. Disputes concerning the selection of the neutral physician or back wages shall be subject to the grievance procedure.

 

For locations where the Employer intends to implement a modified work program or has a modified work program in place, the Local Union shall be provided with a copy of the current form(s) being used for employee evaluation for release and general job descriptions. This information shall be general in nature, not employee specific. 

 

When a modified work assignment is made, the employee shall be provided with the hours and days he/she is scheduled to work as well as the nature of the work to be performed in writing. A copy of this notice shall also be submitted to the Local Union.

 

An employee who is placed in a modified work position may be subject to medical evaluation(s) by a physician selected by the Employer to determine if the modified work being performed is accelerating the rehabilitative process as anticipated by Section 2 above. In the event such medical evaluation(s) determine that the rehabilitative process is not being accelerated, the employee shall have the right to seek a second opinion from a physician of his choosing. Any disputes regarding conflicting medical claims shall be resolved in accordance with the provisions outlined above. The employee may be removed from the modified work program based upon final medical findings under this procedure. Employees so removed shall not have their worker’s compensation benefits affected because of such removal. In the event the employee’s temporary disability worker’s compensation benefit is subject to reduction by virtue of an applicable Federal or State statute, the Employer shall pay the difference between the amount of the reduced temporary worker’s compensation benefit to which the employee would be entitled.

 

 

 

 

Holiday pay shall first be paid in accordance with the provisions of the applicable Supplemental Agreement as it relates to on-the-job injuries. Once such contractual provisions have been satisfied, holidays will be paid at the modified work rate which is the modified work wage plus the temporary partial disability benefit.

 

Sick leave and funeral leave taken while an employee is performing modified work will be paid at the modified work rate, which is the modified work wage plus the temporary partial disability benefit. Unused sick leave will be paid at the applicable contract rate where the employee performed modified work and qualified for the sick leave during the contract year.

 

 

 

 

 

Section 3. Workers Compensation Pay Dispute  

NO CHANGE 

Section  4.  Americans with Disabilities Act

NO CHANGE 

 

ARTICLE 15.   MILITARY CLAUSE

NO CHANGE 

 

 

ARTICLE 16.  EQUIPMENT, SAFETY AND HEALTH

 

Preamble 

NO CHANGE 

 

Section 1.  Safe Equipment 

NO CHANGE 

 

Section 2.  Dangerous Conditions 

NO CHANGE 

 

Section 3.  Accident Reports 

NO CHANGE 

 

Section 4.  Equipment Reports 

NO CHANGE 

 

Section 5.  Qualifications on Equipment 

 

If the Employer or government agency requests a regular employee to qualify on equipment requiring a classified or special license, or in the event an employee is required to qualify (recognizing seniority) on such equipment in order to obtain a better job opportunity with his/her Employer, the Employer shall allow such regular employee the use of the equipment so required in order to take the examination on the employee’s own time. 

 

Costs of such license required by a government agency will be paid for by the employee.

 

Once obtained an employee must maintain his/her commercial driver’s license with required endorsements unless disqualified by regulatory mandate or documented medical disability. 

 

An employee unable to successfully pass the DOT Commercial Driver’s License (CDL) examination will be allowed to take a leave of absence for a period not to exceed two (2) years without loss of seniority., provided the employee makes a bona fide effort to pass the test each time the opportunity presents itself. The employee will be given work opportunities ahead of casuals to perform non-CDL required job functions. Such employee shall be allowed to claim any open non-CDL bid his/her seniority will allow. This bidding provision shall not apply to combination facilities with the exception of locations that have an established practice or agreement providing for disqualified employees to bid on non-CDL positions. 

 

Section 6.  Equipment Requirements

 

 

All equipment purchased, ordered, and/or introduced to the Pickup and Delivery operations after April 1, 2003 will be equipped with air-conditioning and will be maintained in proper operating condition during the period of May 31st through September 30th throughout the year. The Company will not exceed two weeks in making necessary air conditioning repairs during this period. It shall not be a violation of this section to operate any unit while waiting for repairs. 

 

 

 

 

 

 

 

 

 

 

Any alleged violation of the above requirements shall not be cause for refusal of the equipment, but shall be subject to the grievance procedure as a safety and health issue.

 

 

Where the manufacturer does not recommend and provide shock absorbers as standard equipment with the tractor front suspension assembly, shocks shall not be considered as a necessary or integral part of that suspension system.

 

Any alleged violation of the above, including maintenance of existing equipment, shall not be cause for refusal of equipment but shall be subject to the grievance procedure as a safety and health issue. 

 

 

a. Length – 80 inches; b. Width – 34 inches; and, c. Height – 24 inches.

 

It is understood that a “manufacturing tolerance of error” of one inch (1”) is permissible, provided the original specifications were in conformity with the above recommended dimensions. It is understood that there shall be no retrofit of equipment currently in service.

 

 

 

 

 

 

The Employer shall make a bona fide attempt to make a telephone available for the driver at closed terminals during the trailer switch.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The measurement of 15-3/4 inches from the front of the mattress to the closed sleeper curtain, at any point across the cab, shall apply for the minimum interior walk-in dimension on newly manufactured over-the-road sleeper tractors ordered after April 1, 2008.  It is understood that the contractual width of a sleeper mattress is 34 inches when determining the 15-3/4 inches from the front of the mattress to the sleeper curtain. 

 

All walk-in sleeper units introduced into operation after April 1, 2008 will have a minimum sleeper berth height of 65 inches from the floor to interior ceiling of the sleeper berth.  It is also understood that the entrance opening into the sleeper berth area will be a minimum of 64 inches.  

 

This will not apply to triple runs as the length now prohibits.  However, if and when it becomes legal to run walk-in sleepers on triple lanes, all new equipment ordered after that effective date will be equipped with walk-in sleeper berths.

 

 

 

 

 

 

 

 

 

(1) States or locations: Alabama, Arkansas, Arizona, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, New Mexico, Nevada, Oklahoma, South Carolina, Tennessee, Texas, Long Beach, CA, Pico Rivera, CA, and San Bernardino, CA. 

 

The Company and the Union shall meet periodically to discuss the feasibility of additional locations.

 

 

Section 7.  National Safety, Health & Equipment Committee 

NO CHANGE 

 

Section 8.  Hazardous Materials Program 

NO CHANGE 

 

Section 9.  Union Liability 

NO CHANGE 

 

Section 10.  Government Required Safety & Health Reports 

NO CHANGE 

 

Section 11.  Facilities

NO CHANGE 

 

 

ARTICLE 17.  PAY PERIOD

NO CHANGE 

 

Timely Pay For Drivers

NO CHANGE 

 

Pay Period

NO CHANGE 

 

 

ARTICLE 18.  OTHER SERVICES 

NO CHANGE 

 

 

ARTICLE 19.  POSTING

 

Section 1. Posting of Agreement

NO CHANGE 

 

Section 2. Union Bulletin Boards

NO CHANGE 

 

 

ARTICLE 20.  UNION AND EMPLOYER COOPERATION

 

Section 1. Fair Day’s Work for Fair Day’s Pay

NO CHANGE 

 

Section 2. Joint Industry Development Committee

NO CHANGE 

 

Section 3. Benefits Joint Committee

NO CHANGE 

 

Section 4. New Business/Job Creation Opportunities

NO CHANGE 

 

 

ARTICLE 21.  UNION ACTIVITIES

NO CHANGE 

 

 

ARTICLE 22.  OWNER-OPERATORS

NO CHANGE 

 

 

ARTICLE 23.  SEPARATION OF EMPLOYMENT 

NO CHANGE 

 

 

ARTICLE 24.  INSPECTION PRIVILEGES AND EMPLOYER AND EMPLOYEE IDENTIFICATION 

NO CHANGE 

 

 

ARTICLE 25.  SEPARABILITY AND SAVINGS CLAUSE

NO CHANGE 

 

 

ARTICLE 26.  TIME SHEETS, TIME CLOCKS, VIDEO CAMERAS, AND COMPUTER TRACKING DEVICES

 

Section 1. Time Sheets and Time Clocks

NO CHANGE 

 

Section 2. Use of Video Cameras for Discipline and Discharge

NO CHANGE 

 

Section 3. Audio, Video and Computer Tracking Devices

 

The Employer may use video, still photos derived from video, electronic tracking devices and/or audio evidence to discipline an employee without corroboration by observers if the employee engages in conduct such as dishonesty, falsification of logs, records, claims for compensation and other documents, theft of time or property, vandalism, or physical violence for which an employee could be discharged without a warning letter.  If the information on the video, still photos, electronic tracking devices and/or audio recording is to be utilized for any purpose in support of a disciplinary or discharge action, the Employer must provide the Local Union, prior to the hearing, an opportunity to review the evidence used by the Employer. 

 

 

ARTICLE 27.  EMERGENCY REOPENING

NO CHANGE 

 

 

ARTICLE 28.   SYMPATHETIC ACTION

NO CHANGE 

 

 

ARTICLE 29.  SUBSTITUTE SERVICE 

 

Section 1.  Piggyback Operations 

NO CHANGE 

 

Section 2.  Maintenance of Records

NO CHANGE 

 

Section 3.  Intermodal Service

NO CHANGE 

 

(b)  Use of Intermodal Service 

NO CHANGE 

 

(c) Job Protection for Current Road Drivers 

 

 

 

Any road driver who is adversely affected by an approved Intermodal Operation and would thereby be subject to layoff, or who is on layoff at an affected domicile at the time an Intermodal Operation is approved, shall be offered work opportunity at other road driver domiciles within the Employer’s system. The Employer shall include in its proposed Intermodal Operations specific facts that adequately support the Employer’s claims that there will be sufficient freight to support the work opportunities the Employer proposes at each gaining domicile. In the event there is more than one (1) domicile involved, the drivers adversely affected shall be dovetailed on a master seniority list and an opportunity to relocate shall be offered on a seniority basis, subject to the provisions of Article 8, Section 6. The “hold” procedures set forth in Article 8, Section 6 of the ABF NMFA shall be applicable. Where the source of the proposed work opportunity is presently being performed by bargaining unit employees over the road, the Employer shall be required to make reasonable efforts to fill the offered positions as set forth in Article 8, Section 6(d)(6). 

 

Drivers who relocate under this provision shall be dovetailed on the applicable seniority list at the domicile they bid into. Health & welfare and pension contributions shall be remitted in accordance with the provisions of Article 8, Section 6(a) and moving and lodging shall be paid in accordance with Article 8, Section 6(c) of the ABF NMFA.

 

It is understood and agreed that the intent of this provision is to provide the maximum job security possible to those drivers affected by the use of intermodal service. Therefore, the number of drivers on the affected seniority lists at rail origin points at the time an intermodal change becomes effective shall not be reduced during the term of this Agreement other than as may be provided in subsequent changes of operations. Drivers on the affected seniority lists at gaining domiciles at the time an intermodal change becomes effective, shall not be permanently laid off during the term of this Agreement.

 

The senior driver voluntarily laid off at an intermodal losing domicile will be restored to the active board each time foreign drivers or casuals (where applicable) make ten (10) trips (tours of duty) within any thirty (30) calendar day period on a primary run of such domicile, not affected by a Change of Operations. 

 

For the purposes of this Section, short-term layoffs (1) that coincide with normal seasonal freight flow reductions that are experienced on a regional basis and that include a reduction in rail freight that corresponds to the reduction in truck traffic, or (2) that are incidental day-to-day layoffs due to reasons such as adverse weather conditions and holiday scheduling, shall not be considered as a permanent layoff. Layoffs created by a documented loss of a customer shall not exceed thirty (30) days. Any layoff for reasons other than as described above shall be considered as a permanent layoff. The Employer shall have the burden of proving that a layoff is not permanent.

 

In order to ensure that the work opportunities of the drivers at the gaining domiciles are not adversely affected by the redomiciling of drivers, the bottom twenty-five percent (25%) of the drivers at a gaining domicile shall not have their earnings reduced below an average weekly earnings of seven hundred eight hundred and fifty dollars ($700)  ($850). This seven hundred dollar ($700) eight hundred and fifty dollar ($850) average wage guarantee shall not start until the fourth (4th) week following the implementation of the approved Intermodal Change of Operation.

 

It is not the intent of this provision to establish a seven hundred dollar ($700) eight hundred and fifty dollar ($850) per week as an artificial base wage but rather a minimum guarantee. This provision shall not preclude the short-term layoffs as defined above. The Employer shall have the burden of proving that drivers at the gaining domiciles have not had their work opportunities adversely affected by the redomiciling of drivers.

 

The seven hundred dollar ($700) eight hundred and fifty dollar ($850) average wage guarantee shall be determined based on the average four (4) weeks earnings of each active protected driver on the bottom twenty-five percent (25%) of the seniority roster. When the earnings of any active protected driver in the bottom twenty-five percent (25%) of the seniority roster totals less than two thousand, eight hundred dollars ($2,800) three thousand, four hundred ($3,400) during each four (4) week period, the driver shall be compensated for the difference between actual earnings and two thousand, eight hundred dollars ($2,800) three thousand, four hundred ($3,400). 

 

The four (4) week average shall be calculated each week on a “rolling” basis. A “rolling” four (4) week period is defined as a base week and the previous three consecutive weeks. Where the Employer makes a payment to an employee to fulfill the guarantee, the amount paid shall be added to the employee’s earnings for the base week of the applicable four (4) week period and shall be included in the calculations for subsequent four (4) week “rolling” periods to determine whether any further guarantee payments to the employee are due.

 

Time not worked shall be credited to drivers for purposes of computing earnings in the following instances:

 

 

No driver shall be penalized by having contractual earned time off credited for purposes of determining the seven hundred dollar ($700) eight hundred and fifty dollar ($850) average wage guarantee. However, where a driver takes earned time off in excess of forty-eight (48) hours during any work week, that work week shall be excluded from the rolling four (4) week period used to determine the seven hundred dollar ($700) eight hundred and fifty dollar ($850) average wage guarantee. 

 

 

Nothing in this subsection applies to or shall be construed to limit claims by any driver on the seniority roster at a gaining domicile alleging that the driver’s work opportunity was adversely affected following the implementation of the Intermodal Change of Operations because of the Employer’s failure to provide adequate work opportunities for existing and redomiciled drivers. However, after the point that the Employer has provided adequate work opportunities for protected drivers (existing and redomiciled), the wage protection for active drivers in the bottom twenty-five percent (25%) of the seniority roster shall be limited to the seven hundred dollar ($700) eight hundred and fifty dollar ($850) guarantee.

 

As soon as a factual determination has been made that a driver in the bottom twenty-five percent (25%) of the seniority roster is entitled to the seven hundred dollar ($700) eight hundred and fifty dollar ($850) average wage guarantee, the driver’s claim shall be paid. All other types of claims that the driver’s work opportunities have been adversely affected shall be held in abeyance until determined through the intermodal grievance procedure.

 

Section 4.  National Intermodal Committee 

NO CHANGE 

 

Section 5.  

NO CHANGE 

 

Section 6. 

 

1. Notwithstanding anything in this Agreement to the contrary, the Employer shall be permitted to utilize companies for over-the-road purchased transportation substitute service.    The parties shall designate at least one (1) Preferred Company for over-the-road purchased transportation substitute service under this Section.  Until December 31, 2009, the maximum amount of over-the-road purchased

transportation shall be limited to 4% of the Employer’s total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during any calendar year.  During Calendar Year 2010, the maximum amount of over-the-road purchased transportation shall be increased from 4% to 6.5% of the Employer’s total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during any calendar year.  During Calendar Year 2011, the maximum amount of over-the-road purchased transportation shall be increased from 6.5% to 7% of the Employer’s total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during any calendar year.    During Calendar Year 2012, the maximum amount of overthe-road purchased transportation shall be increased from 7% to 9% of the Employer’s total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during any calendar year.  In the event the parties fail to designate at least one (1) Preferred Company for over-the-road purchased transportation substitute service, the maximum amount of rail miles provided for in Section 3(b)(4) of the Article shall be returned to 26% for the remainder of this Agreement.  It is agreed that any Preferred Company utilized under this Section shall be permitted to drop and pick-up trailers at the Employer’s terminal locations, but shall be required to do so in areas of the terminal specifically designated for such exchange.     

 

2. For purposes of the Employer’s existing rail origin points as described in Article 29, Section 3, the use of a Preferred Company under this Section over established relay and/or through operations shall include protection for all bid drivers during each dispatch day and all extra board drivers during each dispatch week at the originating domiciles.  For purposes of determining the weekly protection for extra board drivers, the affected driver’s average weekly earnings during the previous four (4) week period in which the driver had normal earnings shall be considered the weekly protection when violations occur.  In the event that the Employer uses a Preferred Company as substitute service, the Article 29, Section 3 job protections for current road drivers shall apply. 

 

3. All disputes arising under this Article 29 Section 6 shall be referred for resolution to the National Review Committee. 

 

 

MEMORANDUM OF UNDERSTANDING

PURCHASED TRANSPORTATION

 

The undersigned parties have reached agreement regarding Purchased Transportation Service (PTS) and outline the following understandings with reference to the operation/employee protection of this MOU.  This MOU is intended to permit a limited use of PTS for over-the-road transportation only. Nothing in this MOU is intended to permit the use of PTS for any other operation (i.e. P & D, Local Cartage, current intermodal, drayage, or shuttle operations etc.).     Article 29 of the ABF NMFA remains in effect except as specifically provided for in this Memorandum of Understanding.

 

Any disputes regarding PTS will be referred to the National PTS Committee consisting of an equal number of representatives from the Union and the Company for resolution.  Any failures to resolve the dispute will be referred to the National Grievance Committee.

 

 

 

ARTICLE 30.  JURISDICTIONAL DISPUTES

NO CHANGE 

 

 

ARTICLE 31.  SINGLE EMPLOYER, MULTI-UNION UNIT

NO CHANGE 

 

 

ARTICLE 32.  SUBCONTRACTING

 

Section 1. Work Preservation

NO CHANGE 

 

Section 2. Diversion of Work - Parent or Subsidiary Companies

NO CHANGE 

 

Section 3. Subcontracting

NO CHANGE 

 

Section 4. Expansion of Operations

 

(a) Adjoining Over-The-Road and Local Cartage

NO CHANGE 

 

Operations

NO CHANGE 

 

NO CHANGE 

 

(d)    

NO CHANGE 

 

Section 5.  New Business Opportunities 

 

For the purpose of preserving work and job opportunities, the National Grievance Committee may define the circumstances and adopt procedures by which the Employer and a Local Union, parties to this Agreement, may in compliance therewith enter into a Special Circumstance Agreement which does not meet the standards provided herein.

 

In order to preserve work and increase job opportunities, the Company may utilize third parties for final mile deliveries of special freight. These deliveries are limited to “room of choice”, “white glove” assembly, and installation services inside addresses that are above and beyond the normal scope of service provided by ABF. The third-party carriers in this regard shall not perform any dock work or loading/unloading at any ABF terminal or station (“service center”). Bargaining unit employees shall continue to perform all “curbside” or “to the threshold” deliveries of such freight when that is the destination. The purpose of this paragraph is to allow the Company to obtain and hold new business accounts that result in a net gain of work opportunities for the unit. This paragraph shall not result in the layoff of bargaining unit employees. On a monthly basis, the Company shall provide the local union with a list of shippers that fall under this paragraph. Also, all delivery bills for these “inside” deliveries shall specify that it is inside “white glove service” work. 

 

Section 6. 

 

MEMORANDUM OF UNDERSTANDING ON ARTICLE 32 – SUBCONTRACTING

NO CHANGE 

 

Section 7.  National Subcontracting Review Committee

NO CHANGE 

 

 

ARTICLE 33.  WAGES, CASUAL RATES, PREMIUMS AND COST-OF-LIVING (COLA)

 

1. General Wage Adjustments: All Regular Employees 

***SEE: NATIONAL SUMMARY OF ECONOMICS*** 

 

2. Casual Rates 

***SEE: NATIONAL SUMMARY OF ECONOMICS***

 

(b) Dock Only Casuals

***SEE: NATIONAL SUMMARY OF ECONOMICS*** 

 

3. Utility Employee and Sleeper Team Premiums

 

 

 

4. Cost of Living Adjustment Clause

 

All regular employees shall be covered by the provisions of a cost-of-living allowance as set forth in this Article.

 

The amount of the cost-of-living allowance shall be determined as provided below on the basis of the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W (Revised Series Using 1982-84 Expenditure Patterns). All Items published by the Bureau of Labor Statistics, U.S. Department of Labor and referred to herein as the Index.

 

Effective July 1, 2014 2019, and every July 1 thereafter during the life of the Agreement, a cost-of-living allowance will be calculated on the basis of the difference between the Index for January, 2013 2018, (published February, 20132018) and the index for January, 2014 2019 (published February, 2014 2019) with a similar calculation for every year thereafter, as follows: For every 0.2 point increase in the Index over and above the base (prior year’s) Index plus 3.5%, there will be a 1 cent increase in the hourly wage rates payable on July 1, 20142019, and every July 1 thereafter. These increases shall only be payable if they equal a minimum of five cents ($.05) in a year.  In no case shall the cost-of living-allowance be more than five (5) cents in any given year.

 

All cost-of-living allowances paid under this Agreement will become and remain a fixed part of the base wage rate for all job classifications. A decline in the Index shall not result in the reduction of classification base wage rates.

 

Mileage paid employees will receive cost-of-living allowances on the basis of .25 ▇▇▇▇▇ per mile for each 1 cent increase in hourly wages.

 

In the event the appropriate Index figure is not issued before the effective date of the cost-of-living adjustment, the cost-of-living adjustment that is required will be made at the beginning of the first (1st) pay period after the receipt of the Index.

 

In the event that the Index shall be revised or discontinued and in the event the Bureau of Llabor Statistics, U.S. Department of Labor, does not issue information which would enable the Employer and the Union to know what the Index would have been had it not been revised or discontinued, then the Employer and the Union will meet, negotiate, and agree upon an appropriate substitute for the Index. Upon the failure of the parties to agree within sixty (60) days, thereafter, the issue of an appropriate substitute shall be submitted to an arbitrator for determination. The arbitrator’s decision shall be final and binding.

 

5.  Education and Training 

The Employer will pay each regular employee that completes CDL training and certification after April 1, 2013 2018 the sum of three hundred dollars ($300.00).   

 

 

ARTICLE 34.  GARNISHMENTS

ARTICLE 34 INTENTIONALLY LEFT BLANK 

 

In the event of notice to the Employer of a garnishment or impending garnishment, the Employer may take disciplinary action if the employee fails to satisfy such garnishment within a seventy-two (72) - hour period (limited to working days) after notice to the employee. However, the Employer may not discharge any employee by reason of the fact that his earnings have been subject to garnishment for any one (1) indebtedness. If the Employer is notified of three (3) garnishments irrespective of whether satisfied by the employee within the seventy-two (72) - hour period, the employee may be subject to discipline, including discharge in extreme cases. However, if the Employer has an established practice of discipline or discharge with a fewer number of garnishments or impending garnishments, if the employee fails to adjust the matter within the seventy-two (72) - hour period, such past practice shall be applicable in those cases. 

 

ARTICLE 35.

 

Section 1. Employeeʼs Bail

NO CHANGE 

 

Section 2. Suspension or Revocation of License

NO CHANGE 

 

Section 3. Drug Testing PREAMBLE

NO CHANGE 

 

ABF NMFA UNIFORM TESTING PROCEDURE

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

4. Laboratory Accreditation

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

Section 4. Alcohol Testing

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

Section has been deleted

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

NO CHANGE 

 

 

ARTICLE 36.  NEW ENTRY (NEW HIRE) RATES

***SEE: NATIONAL SUMMARY OF ECONOMICS***

 

 

ARTICLE 37.  NON-DISCRIMINATION

NO CHANGE 

 

 

ARTICLE 38. 

 

Section 1.  Sick Leave

 

Effective April 1, 1980 2018 and thereafter, all Supplemental Agreements shall provide for a minimum of five (5) days or forty (40) hours of sick leave per contract year.  The Employer agrees to comply with all Federal, State or Local laws with regards to paid sick leave including exemptions for bargaining agreements. 

 

Sick leave not used by March 31 December 31 of any contract year will be paid no later than the third Friday of January on March 31st at the applicable hourly rate in existence on that date. Each day of sick leave will be paid for on the basis of a minimum of eight (8) hours straight-time pay or whatever the normal daily work schedule is (e.g. 10 hours if the employee is on a 10 hour schedule up to a maximum of forty (40) hours at the applicable hourly rate.

 

Effective April 1, 2008, Sick sick leave will be paid to eligible employees beginning on the first (1st) working day of absence.

 

Effective January 1, 2009, the The accrual and cash out dates for sick leave will move from April 1 to January 1.   

 

The additional sick leave days referred to above shall also be included in those Supplements containing sick leave provisions prior to April 1, 1976. The National Negotiating Committees may develop rules and regulations to apply to sick leave provisions negotiated in the 1976 Agreement and amended in this Agreement uniformly to the Supplements. The Committee shall not establish rules and regulations for sick leave programs in existence on March 31, 1976.

 

Section 2.  Jury Duty 

NO CHANGE 

 

Section 3.  Family and Medical Leave Act 

 

All employees who worked for the Employer for a minimum of twelve (12) months and worked at least 1250 hours during the past twelve (12) months are eligible for unpaid leave as set forth in the Family and Medical Leave Act of 1993.

 

Eligible employees are entitled to up to a total of 12 weeks of unpaid leave during any twelve (12) month period for the following reasons:

 

 

 

 

The employee’s seniority rights shall continue as if the employee had not taken leave under this Section, and the Employer will maintain health insurance coverage during the period of the leave.

 

The Employer may require the employee to substitute accrued paid vacation or other paid leave for part of the twelve (12) week leave period.

 

The employee is required to provide the Employer with at least thirty (30) days advance notice before FMLA leave begins if the need for leave is foreseeable. If the leave is not foreseeable, the employee is required to give notice as soon as practicable. The Employer has the right to require medical certification of a need for leave under this Act. In addition, the Employer has the right to require a second (2nd) opinion at the Employer’s expense. If the second opinion conflicts with the initial certification, a third opinion from a health care provider selected by the first and second opinion health care providers, at the Employer’s expense may be sought, which shall be final and binding. Failure to provide certification shall cause any leave taken to be treated as an unexcused absence.

 

As a condition of returning to work, an employee who has taken leave due to his/her own serious health condition must be medically qualified to perform the functions of his/her job. In cases where employees fail to return to work, the provisions of the applicable Supplemental Agreement will apply.

 

It is specifically understood that an employee will not be required to repay any of the contributions for his/her health insurance during FMLA leave. No employee will be disciplined for requesting or taking FMLA leave under the contract absent fraud, misrepresentation, or dishonesty.

 

Disputes arising under this provision shall be subject to the grievance procedure.

 

The provisions of this Section are in response to the federal FMLA and shall not supersede any state or local law which provides for greater employee rights.

 

The Employer may not force an employee to use prescheduled vacation time as FMLA leave, provided the vacation involved was prescheduled in accordance with the applicable supplemental agreement.  The Employer may not force an employee to take the last unscheduled week of vacation as FMLA leave. 

 

The Employer may not force an employee who has taken separate hours of unpaid leave for medical reasons to substitute those hours as accrued leave under the FMLA.

 

The Employer may not force an employee to substitute accrued leave for FMLA leave if the employee is receiving supplemental loss-of-time disability benefits from a benefit plan under the Agreement.

   

 

ARTICLE 39.  DURATION 

 

Section 1. 

 

This Agreement shall be in full force and effect from April 1, 20132018 to and including March 31, 2018 June 30, 2023, and shall continue from year to year thereafter unless written notice of desire to cancel or terminate this Agreement is served by either party upon the other at least sixty (60) days prior to date of expiration.

 

When notice of cancellation or termination is given under this Section, the Employer and the Union shall continue to observe all terms of this Agreement until impasse is reached in negotiations, or until either the Employer or the Union exercise their rights under Section 3 of this Article.

 

Section 2. 

 

Where no such cancellation or termination notice is served and the parties desire to continue said Agreement but also desire to negotiate changes or revisions in this Agreement, either party may serve upon the other a notice at least sixty (60) days prior to March 31, 2018 June 30, 2023 or March 31st June 30th of any subsequent contract year, advising that such party desires to revise or change terms or conditions of such Agreement.

 

Section 3. 

 

The Teamsters National Freight Industry Negotiating Committee, as representative of the Local Unions or the signatory Employer or the authorizing Employer Associations, shall each have the right to unilaterally determine when to engage in economic recourse (strike or lockout) on or after April 1, 2018 July 1, 2023, unless agreed to the contrary.

 

Section 4.

 

Revisions agreed upon or ordered shall be effective as of April 1, 2018 June 30, 2023 or April 1st of any subsequent contract year.

 

Section 5. 

NO CHANGE 

 

Section 6.  

NO CHANGE 

 

IN WITNESS WHEREOF the parties hereto have set their hands and seals this day of ___ , 20132018 to be effective April 1, 20132018, except as to those areas where it has been otherwise agreed between the parties.

 

NEGOTIATING COMMITTEES FOR THE LOCAL UNIONS:

 

TEAMSTERS NATIONAL FREIGHT INDUSTRY NEGOTIATING COMMITTEE 

 

[TNFINC Committee names to be inserted] 

 

 

FOR THE EMPLOYER:

 

[ABF Committee names to be inserted] 

 

 

 

 

ADDENDUM A

Work Day/work week 

 

The number of start times in effect today will remain, except as agreed to between the Local Union and the Company.  In addition to the existing number of start times.  The Company will be allowed to add three (3) additional start times in a twenty-four (24) hour period.  There shall be no more than 12 total start times unless such times currently exist in any given location. 

 

(Examples:  If a location currently has five (5) start times, they would be allowed to have eight (8) start times.  If a location has six (6) start times they could go to nine (9).  If a location has ten (10) start times they could go to twelve (12).  These start times include all local cartage, dock, ▇▇▇▇▇▇▇ 

classifications.) 

 

 

ADDENDUM B

Break Time 

 

All Breaks shall remain the same.All locations that currently have two (2) fifteen (15) minute breaks will be reduced to two (2) ten (10) minute breaks, unless otherwise required by law.    Exceptions are straight 8’s and 4-10 hour shifts, for which breaks will remain the same. 

 

There will be an additional ten (10) minute break after the tenth (10th) hour and once every two (2) hours thereafter. 

 

 

 

ADDENDUM C

Work Across Classifications 

NO CHANGE

NATIONAL ECONOMIC SETTLEMENT

 

ABF NMFA

TENTATIVE AGREEMENT

Reached March 28, 2018

 

Summary of General Monetary

National and all Supplemental Agreements

For the period covering April 1, 2018 through June 30, 2023

 

Note: The general hourly, mileage and other benefit modifications are as follows and shall be applied in accordance with the appropriate Area Supplement.

 

Ratification Payment: Active full-time employees as of the date of ratification will receive a $1,000.00 lump sum payment, less applicable taxes. Inactive full-time employees, including those on approved leave of absence, workers’ compensation and disability leave, shall receive the $1,000.00 lump sum payment upon recall or return to active full-time status between date of ratification and December 31, 2018. Casual employees, as of the date of ratification, who have worked at least 300 hours between September 1, 2017 and March 31, 2018 will receive a $500.00 lump sum payment.  Payment of the lump sum will be made by separate check and within thirty days of date of ratification. 

 

General Wage Adjustments:

All regular employees subject to this Agreement will receive the following general wage increases: 

$0.30 increase per hour on all hourly rates

0.750 cents per mile on all mileage rates

 

$0.35 increase per hour on all hourly rates

0.875 cents per mile on all mileage rates

 

$0.40 increase per hour on all hourly rates

1.000 cents per mile on all mileage rates

 

$0.45 increase per hour on all hourly rates

1.125 cents per mile on all mileage rates

 

$0.50 increase per hour on all hourly rates

1.250 cents per mile on all mileage rates

   

 

Other Wage Adjustments:

 

Vacation:

 

Profit-Sharing Bonus (MOU to ABF NMFA, E. (1-3)

 

 

 

 

Health & Welfare and Pension Plans:

All current language shall be replaced with the following:

 

 

 

For the following funds, however, the following fixed guaranteed contribution rate increases shall apply:

Central States Health - Teamcare

Western Teamsters Welfare Trust (WTWT)

Central Pennsylvania Health Plan

Local 710 Health Plan

Local 705 Health Plan

Local 179 Health Plan

Local 673 Health Plan

 

August 1, 2018-increase $0.39 per hour

August 1, 2019-increase $0.40 per hour

August 1, 2020-increase $0.42 per hour

August 1, 2021-increase $0.50 per hour

August 1, 2022-increase $0.50 per hour

 

Monthly, daily and/or hourly contributions shall be converted from the hourly contributions in accordance with past practice.

 

The trigger in all Supplements for qualifying for a week’s health and welfare contribution will remain three days, except for supplements that have a longer requirement. Those Supplements on an hourly contribution will continue their respective practices. The trigger for the obligation to make health & welfare contributions in Supplements that provide for a monthly-based contribution shall remain the same.

 

 

The “one-punch” rule for pension contributions in the Chicago area pension funds shall apply where such rule applied prior to the 2013-18 ABF NMFA.

 

Reopener: If new pension legislation is enacted during the term of this agreement, Article 27’s reopener provisions shall apply.

 

If any Pension Fund rejects this agreement because of the company’s level of contributions or otherwise refuses to accept the frozen contribution rate and terminates the Company’s participation in the Fund, the Company shall make contributions to the Teamsters National 401(k) Savings Plan in the amount of six dollars ($6.00) per hour on behalf of the employees in the area covered by the Pension Fund. Such amount shall be immediately 100% vested for the benefit of the employee. If a withdrawal event occurs for any other reason, Article 27’s reopener provisions shall apply (including the right to take economic action).

 

The Company will not seek to withdraw from any Pension Fund to which it contributed under the 2013-18 ABF NMFA.

 

Duration: April 1, 2018 through June 30, 2023 (63 months)

 

 

MOU to ABF NMFA 

ABF Freight System Wage and Vacation Reduction – Job 

Security Guidelines 

Effective First Payroll Period Following Ratification 

through March 31, 2018 

(unless otherwise stated) 

 

Part One: Employee Reduction 

 

1. Wage Reduction.  All bargaining unit and non-bargaining unit employees (including management) will share the burden of economic sacrifice contained in this MOU since job security is the number one asset all ABF employees hope to participate in equally. Towards that end, the bargaining unit employees will be paid in accordance with the wage adjustments set forth in the ABF NMFA, which adjustments are on the following basis:    

 

All employees shall have their hourly wage and mileage rates be reduced by 7.0%. 

Effective July 1, 2014:  Increase all hourly wage and mileage rates by 2.0% 

Effective July 1, 2015:  Increase all hourly wage and mileage rates by 2.0% 

Effective July 1, 2016:  Increase all hourly wage and mileage rates by 2.0% 

Effective July 1, 2017:  Increase all hourly wage and mileage rates by 2.5% 

 

Such wage reductions and/or reduced earnings shall include overtime, incentive pay, etc, in addition to vacation, sick pay, holiday pay, funeral leave, jury duty, and other paid for time not worked.  Non-bargaining unit employees shall share the burden as set forth in (a) below. 

 

(a) The Employer must reduce the total compensation (defined as wages plus health and welfare and pension or retirement benefits) of all non - ABF NMFA bargaining unit employees (including management) by the same percentage reduction (an "Equal Reduction") in total compensation as is being applied to bargaining unit employees.  Consideration will be made for all parties’ respective sacrifices instituted during the twenty four months prior to this Plan’s effective date. The Employer and TNFINC shall cooperate in achieving the equal sacrifice among Canadian employees of ABF, and recognize such efforts must be in compliance with applicable Canadian federal and provincial law. 

 

(b) This MOU shall not prevent the Employer from paying variable, performance based compensation as the Employer has paid in past practice. This shall also not prevent the Employer from providing targeted increases to individual employees if necessary, in the Employer’s judgment, to operate the business so long as the overall total compensation increases are within the effective overall total compensation percentage increases to be received by the bargaining unit employees. If it becomes necessary to exceed this overall percentage increase limit to retain employees for the efficient continued operation of the business, the Employer would request approval from TNFINC. 

 

4. New Hires 

 

All employees hired after ratification shall be paid in accordance with the newly established contractual new hire percentages and the newly established contractual rates. 

 

Part Two: Employee Protections 

 

(A).Access to Employer Financial Records. 

 

The Employer shall submit an annual financial statement to the Local Unions which shall include an income statement, balance sheet and statement of cash flow for the prior year. The Union reserves the right on an annual basis to examine records of the Employer in order to monitor Employer compliance or utilize an independent auditor of its choice to do the same.  As a condition of being provided such statements, books and audit, the Union (and any accountant or auditor engaged on its behalf) must agree to maintain the confidentiality of any Employer financial statements and reports for the protection of the Employer, and to execute a reasonable confidentiality agreement if the Employer requests in such form as the Employer may reasonably require.    

 

(B) Work Preservation.

 

(a) For the duration of this Agreement, the Employer agrees not to establish or purchase any union or non-union trucking company without the prior approval of TNFINC.    

 

(b) The Employer agrees that during every year of the ABF NMFA it will fund the purchase, replacement and maintenance of ABF rolling stock (tractors, trailers and other ABF power equipment) in an amount not less than the net wage reduction provided by the ABF NMFA. 

   

(c)The Employer agrees that it will not transfer any bargaining unit work to another trucking company or truckingrelated service company, regardless of whether that company is affiliated with either ABF or its parent company, unless expressly authorized by the ABF-NMFA. 

 

(d) The Employer makes a good faith commitment, absent any new regulatory or unforeseen extraordinary events, that it will not close ABF for the duration of this agreement.    

 

(C) Bankruptcy Protection. 

 

The purpose of this wage reduction is to make a financial accommodation for the benefit of the Employer, within the meaning of section 365(e)(2) of the Bankruptcy Code. Accordingly, if the Employer files a Chapter 7 or 11 bankruptcy petition or is placed in an involuntary bankruptcy proceeding, the wage reduction may be terminated and wages reverted to full contract agreement on a prospective basis, if TNFINC so elects in writing. If TNFINC does not exercise its option hereunder, the Employer agrees not to file any motion under Sections 1113 or 1114 of the Bankruptcy Code without the union’s approval. 

 

(D) Current Ownership. 

 

In the event a Change of Control of ABF occurs (without the prior written consent of the Union), this wage reduction may be terminated and wages reverted to full contract wage rates in effect immediately prior to ratification on a prospective basis if the Union so elects in writing and all other provisions of this Plan shall be null and void on a prospective basis.    

 

For the purposes of this wage reduction, a "Change of Control," shall be deemed to have taken place when a third person, including a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, assumes ownership of more than 50% of the total voting power of the stock of ABC or where the current directors of ABC (or directors that they nominate or their nominees nominate) no longer continue to hold more than 50% of the voting power of the board of directors). 

 

(E) Profit-Sharing Bonus

 

2.  If the Employer achieves a published, annual operating ratio of 96.0 or below for any full calendar year during this agreement (2014 2019 through 20172022), each employee will receive a bonus based on their individual W-2 earnings (excluding any profit sharing bonuses) for the year in which the qualifying operating ratio was achieved according to the following schedule:    

 

2.The profit-sharing bonus will be distributed to the employees by separate check within 60 days of the end of the calendar year.  An employee must be on the ABF seniority list for the entire calendar year in question to be eligible for such a bonus. Any employee who resigns, retires or otherwise incurs a termination of employment, whether voluntary or involuntary, during the year in question shall not be eligible for a year-end bonus. 

3.There shall be no inter-company charges initiated by the employer or changes in accounting assumptions or practices (GAAP), except as required to conform to governmental regulation, for the purpose of defeating the calculation of the annual operating ratio.    

(F) Pension Legislation

 

In the event that future federal legislation allows ABF to reduce its pension contribution rates which would not cause a reduction in benefits, the Company reserves the right to reopen the ABF NMFA as it relates to the pension contribution rates.  If the parties do not

agree on a mutually satisfactory resolution to negotiations over such issue within sixty (60) days of the start of such negotiations, either party shall be permitted all legal or economic recourse in support of its proposals on this matter notwithstanding any provisions of this Agreement to the contrary. 

 

(G) Dispute Resolution

 

As part of the Collective Bargaining Agreement, disputes pertaining to this MOU are subject to the grievance procedure contained in the ABF National Master Freight Agreement. However, any grievance filed hereunder, by either party, shall be referred directly to the appropriate Regional Joint Area Committee for initial hearing and disposition.