ABF contract ( 2013 )

Information wasn't on TTR previously and helps to understand more about the company.

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Union members employed by ABF Freight System have approved a new five-year contract that will see a wage reduction for drivers through July 2014 and changes in work schedules.
Well, they sort of approved a new contract.
The Teamsters issued a statement late Thursday (June 27) saying the contract had been approved, but not all provisions of the contract met with approval.
“Some local/area supplemental agreements, however, were rejected and issues in those areas must be addressed before the national agreement can be implemented,” noted a statement from the Teamsters.
Teamsters Spokesman Galen Munroe declined to comment on the process or the percentage vote that approved the overall contract.
“We understand the sacrifices our ABF members are making,” Gordon Sweeton, co-chairman of the National ABF Negotiating Committee (TNFINC), said in a statement. “We will work on obtaining approval of those supplements that were not approved. ... Once ratified, the national contract will protect our members’ health, welfare and pension benefits and will also give the company the ability to compete in a very tough trucking environment, which is good for ABF and the long-term job security of our members.”
If the supplemental provisions are approved, the new contract will replace a three-year contract that expired March 31. Both sides have agreed to extend the existing contract until a new contract is approved.
ABF REACTION
A statement from Arkansas Best said more than 6,100 ballots were cast, and noted that “the remaining supplemental agreements that require additional action cover various local work rule and other technical items and do not affect the major economic terms that are covered by the now-ratified ABF NMFA.”
Roy Slagle, president and CEO of ABF Freight, was happy with the result.
“We know this was a difficult decision for our union workforce, following many sacrifices made in recent years by our non-union employees, and we look forward to resolving the remaining supplements in the near term,” Slagle said in a statement.
Judy McReynolds, Arkansas Best President and CEO, said the new contract will result in a more efficient and profitable company.
“As we near the end of this contract negotiation process, we are looking forward not only to a more efficient, profitable ABF but also to continued strong contributions from our non-asset-based, emerging businesses,” McReynolds said in the statement. “With the addition of premium logistics provider Panther Expedited Services a year ago and continued investments in technology and people, our emerging businesses are all poised for additional revenue growth and greater cross-selling opportunities both within our existing ABF customer base and throughout the broader transportation marketplace.”
THE TERMS
Officials with ABF Freight, a subsidiary of Fort Smith-based Arkansas Best Corp., and the International Brotherhood of Teamsters announced May 3 the proposed contract for the about 7,500 drivers for the less-than-truckload carrier. The contract was unanimously endorsed on May 20 by about 160 Teamster local union reps.
The contract includes an immediate 7% wage reduction that is recovered by the fifth year of the contract.
The wage reduction, a key negotiation point pushed by ABF Freight officials, schedule provides for a 7% cut beginning in the pay period following contract ratification. But beginning July 1, 2014, wages are increased 2%. Wages again increase 2% on July 1, 2015, up 2% on July 1, 2016, and up 2.5% on July 1, 2017.
CORPORATE CONCERNS
Arkansas Best officials have said that wage cuts were necessary for the company to return to profitability.
The company reported on April 30 a first quarter 2013 loss of $13.4 million. The loss of 52 cents per share was higher than the consensus analyst estimate of a loss of 41 cent per share. Revenue during the quarter was $520.7 million, well ahead of the $440.9 million during the same quarter in 2012.
The quarter followed a 2012 that saw the Fort Smith-based transportation holding company post a $7.7 million loss, a wide swing from the $6.159 million gain in 2011. Arkansas Best has been unable to post two consecutive years of income gains since 2008.



The company was also able to negotiate for flexibility in work schedules and work across job classifications. Union officials also granted the company flexibility to use non-union, outside carriers to move quickly to capture new business or to reduce the number of “empty miles.”
Existing contract terms were agreed to in 2008 as part of a National Master Freight Agreement (NMFA) with which Arkansas Best, YRC and other trucking companies participated.
Threatened with bankruptcy, YRC was able to obtain a 15% wage reduction from the Teamsters prior to 2010. The deal also saw YRC give equity and board seats to the Teamsters in return for the wage cuts.
Arkansas Best continues to pursue a $750 million lawsuit against the Teamsters and competitor YRCW. Arkansas Best alleges that wage deals between the Teamsters and YRC violated the NMFA. The NMFA, implemented April 1, 2008, was designed to create equal labor costs and other benefit payments among trucking companies with drivers represented by the Teamsters.

The lawsuit, first filed in November 2010, was recently dismissed a second time by U.S. District Court Judge Susan Webber Wright (Eastern District of Arkansas). On Oct. 29, 2012, Arkansas Best appealed the case again to the United States Court of Appeals for the Eighth Circuit (St. Louis). The Circuit has once appealed in favor of Arkansas Best.​

Stephens Inc. Analyst Brad Delco said May 6 that the new contract could boost Arkansas Best earnings by between $2 and $3 annual earnings per share.
Delco, along with research associate Ben Hearnsberger, said the ABF salaries, wages and benefit structure is 12%-15% higher than its non-union competitors and up to 15% higher than YRCW. The Teamsters were given equity in the company in return for lowering wages and benefits.
Company shares closed Thursday (June 27) at $19.99, up 66 cents. The shares are trading again near historic levels, and the trades have been pushing 52 week highs. During the past 52 weeks, the share price has ranged from a $20.37 high to a $6.43 low.

 

FEB 2015 Posting

http://www.thecitywire.com/node/36339#.VPYlHV2K6R8

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With 2014 net income up more than 190% and annual revenue up almost 14%, officials with Fort Smith-based ArcBest plans to spend $200 million during 2015 to modernize and expand its trucking equipment, build new facilities and invest in technology.
ArcBest, a transportation holding company with less-than-truckload carrier ABF Freight as its largest subsidiary, reported early Wednesday (Feb. 4) full year net income of $46.177 million, up 192% compared to the $15.811 million in 2013, and a wide swing from the $7.7 million loss in 2012.
Total revenue during 2014 for ArcBest was $2.612 billion, up 13.6% compared to 2013.
The company ended the year on a positive note with fourth quarter net income hitting $14.543 million, up 40.5% compared to the 2013 quarter. The per share quarterly earnings of 53 cents per share also beat the consensus estimate of 44 cents. Revenue during the fourth quarter was $664.848 million, up 15% compared to the 2013 quarter.
"We made significant progress this year getting ABF Freight on a firmer path toward sustained, historical profitability and communicating with our customers about the full array of transportation and logistics solutions we offer through all of the ArcBest companies," ArcBest President and CEO Judy McReynolds said in a statement.
ArcBest also made progress toward its goal of diversifying revenue and income streams. For example, the Premium Logistics (Panther) division posted $15.64 million of operating income for the year, or 20.6% of the company’s total unadjusted operating income of $75.869 million. In total, the company’s four non-trucking subsidiaries – Premium, FleetNet, ABF Logistics, and ABF Moving – generated $25.776 million in operating income, or about 34% of the total
ABF Freight delivered $50.093 million in operating income during 2014, a big gain over the $10.033 million in 2013, and representing 66% of the company's unadjusted total.
"In addition to seeing improvements at ABF Freight, we are truly excited about the growth opportunities before us in 2015 in many areas, including truckload brokerage, expansion of premium logistics offerings and ongoing collaboration across all of the ArcBest companies," McReynolds said in the earnings report. "This past year was one of marked change for our company, and we now have many of the strategies and tools in place necessary to unlock the innovation and market share growth required for the next level of success at ArcBest.”
SEGMENT OPERATING INCOME 2014
ABF Freight
2014: $50.093 million
2013: $10.033 million
Premium Logistics (Panther)
ABF Freight
2014: $15.64 million
2013: $6.956 million
FleetNet (maintenance services)
ABF Freight
2014: $3.122 million
2013: $3.274 million
ABF Logistics
2014: $3.835 million
2013: $2.973 million
ABF Moving
2014: $3.179 million
2013: $1.85 million
TONNAGE, SHIPMENT REVENUE GAINS
ABF Freight is still the big wheel in the company even with gains in ArcBest’s non-trucking segments. That wheel spun faster in 2014 with improvements across all key metrics for the subsidiary. Those metrics include:
• Billed revenue per shipment during 2014 was $387.60, up 1.93%;
• Shipments during the year totaled 4.98 million, up more than 7.5%;



• Total tons shipped during the year was 3.359 million, up more than 6.5%; and
• The operating ratio for ABF Freight during 2014 was 97.4%, better than the 99.4% in 2013.
“As expected, ABF Freight's profitability improved as a result of its November 2013 union labor contract that reduced expenses and allowed ABF Freight to be more cost competitive with its LTL industry peers,” the company noted in the earnings report.

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2015 CAPITAL PLANS
ArcBest officials also announced Wednesday that capital expenditures for 2015 will be around $200 million, much more than the $86 million in 2014.
Of that, $110 million is for new “road and city tractors and trailers” for ABF Freight to replace aging equipment and rentals. The company says the new equipment will reduce maintenance costs and improve fuel economy.
The company also said it will spend $55 million on real estate and new facilities. In May 2014 the companyannounced a $30 million plan to build a new office building and data center at Chaffee Crossing and boost corporate employment by an estimated 975 by 2021.
ArcBest shares (NASDAQ: ARCB) closed Tuesday at $38.74. During the past 52 weeks the share price ranged from a $47.52 high to a $29.88 low.

 

Missed you, my friend. Been a while accusing you of being a robot. Bless your family as well.
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Without trying to be naive, The numbers of 2014 is very positive. It's the moving freight business, Nothing is 100%
We have been slowly getting in new equipment since the contract (2013) HQ was built. Labor cost reduction no doubt helped that, Like you said " Hopefully this will keep all the employees from being laid off or knocked down to part-time "

Our barn ( can't speak for others AO ) is hanging on in the dead season. New hires ( on probation ) barely getting hours, It's part of that season.