The International Brotherhood of Teamsters yesterday reached a tentative master freight agreement that covers 65,000 drivers and warehouse workers and provides raises of 11.3 percent over five years.þþAt a news conference in Chicago, James P. Hoffa, the union's president, hailed the accord, saying it did not raise out-of-pocket health expenses and prevented trucking companies from subcontracting to lower-wage Mexican operators once the border is opened to Mexican trucks.þþMr. Hoffa said that when the companies' increased contributions for health coverage and other benefits were included, the contract gave wage and benefit increases averaging 3.4 percent a year. The annual wage increase averaged 2.3 percent.þþAsserting that the contract is a model that other unions should seek to emulate, Mr. Hoffa said, ÿThe nation is in the depths of recession and on the brink of war, and we maintained our strong health care benefits, protected our pensions and won the highest wage increases in more than a decade.ÿþþThe agreement covers long-haul truckers, a group that once had more than 200,000 drivers and was the heart of the union when Mr. Hoffa's father, James R. Hoffa, ran the Teamsters and threatened freight strikes that would have paralyzed the nation's economy. The Teamsters' freight membership plunged after the trucking industry was deregulated in the 1980's.þþUnder the accord, wages will rise by $2.25 an hour over five years, from the current $19.90. There will be a cost-of-living increase if inflation exceeds 3 percent, and there will be no health care co-payments. Over the five years, employers will increase their contributions toward health care and pensions by a total of $3.10 per hour. þþThe union's old contract with the Motor Freight Carriers Association was scheduled to expire on March 31. The accord covers workers at ABF, a unit of Arkansas Best; Roadway Express; USF Holland, a unit of USFreightways; and the Yellow Corporation. Smaller carriers that employ 20,000 additional Teamsters traditionally adopt similar contracts.þþTim Lynch, president of the motor carriers association, said, ÿThis agreement represents a fair balance between rewarding the trucking industry's best employees and positioning these companies for significant growth in the future.ÿþþMr. Hoffa said he was especially pleased that the agreement restored the union's right to strike when there was a deadlock over grievances. The union gave up that right in the 1994 contract.þþThe accord requires air-conditioned cabs for all newly purchased trucks used in cities.þþ
Source: NY Times
