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ABF | ABF warns of major network changes if it can't lower labor costs and gain flexibility

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ABF Freight System Inc. warned today it will need to make "extensive changes" to its network if it can't dramatically lower its labor costs and increase its flexibility through a new agreement with the Teamsters union. Those changes could include shutting terminals and distribution centers.

In its first comment about its ongoing contract negotiations with the union, the 90-year-old less-than-truckload (LTL) carrier would not detail what proposed changes it has in mind. The extent of any operational upheaval "depends upon the savings ABF is able to achieve," it said. As of mid-2012, ABF operated 265 terminals nationwide.

Fort Smith, Ark.-based ABF added that its future success would not be linked to any improvement in the U.S. economy. ABF said that based on its historical growth patterns dating back to the 1930s, it can't produce the level of future growth needed to return the company to its pre-recession earnings levels. ABF has lost $230 million since 2009.

ABF's comments were in response to a Dec. 14 Teamster communiqué, which said the carrier's profits will rebound to pre-recessionary levels once the U.S. economy returns to a 4 percent or higher annual growth rate. ABF made clear that it was not happy that the Teamsters would issue a statement on the talks four days before they began...................

ABF warns of major network changes if it can't lower labor costs and gain flexibility – DC Velocity
 
ABF has too much capacity in the system. McReynolds will do what CEO's do..reduce terminal capacity, fleet and man power..sooner or later after concessions

Like Bill did​
 
I'd say ABF will do this with or without concessions. Unless a clause is put into the contract. If it's like the UPSF contract, the clause will have a hole big enough to drive a contractor's truck thru it.
 
No sense getting excited or worried, they are going to do whatever they will do whether they get concessions or not. Are they going to pass the savings on to the customers. I really don't think so. So that only means 1 thing, that the savings from us will go to stock holders, and more bonus for management, and what do we get? More harassment less wages, having to work till we are 70 or possible dead. Think about this, you are 65 years old and have a treadmill to deliver to 2nd floor with no help, but they still expect you to do whatever they want, but do it for less and don't forget you better not get hurt.
 
Just saying....if abf gets some of the concessions to lower frt prices.i think abf will haul more frt and kick some ass.and grow this s.o.b.rather we like it or not its going to change
 
truckerboy said:
Just saying....if abf gets some of the concessions to lower frt prices.i think abf will haul more frt and kick some ass.and grow this s.o.b.rather we like it or not its going to change
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they aren't planning on passing their savings onto the customers and changing their pricing...at least that's what we were told by the regional VP in our area when he was asked about it when he came to our dock to sit with us and watch the video they had already sent out to all of us...
 
We all know what cutting costs could entail, what is the flexibility that they talk about? Every dvd or mailing to our homes included flexibility like it was equal to cash savings. ABF did not like the Teamsters putting out a news release on Dec. 14th like they were bargaining outside the process yet they think it's ok for them to put it out there that the will close terminals and dc's if they don't get the cash savings they desire. The ABF statement came out after the negotiations started and very well may be challenged as unfair labor practice since it's threatining tone would have been made AFTER the process had been started.
 
If they want concessions, then it has to start at the top and not just the teamster members. Perhaps their buying Panther and giving out raises and bonuses was bad timing, but they were going to do it anyway, just a matter of time. Guys remember this is only the beginning of negotiations and both side are going to make their points, that's all.

For the guys that think concessions are going to save the company, you may want to think about yourself and your family's best interest. You will be making less money, less benefits, and maybe damage your retirement so you may never be able to retire. while you are taking concessions, management will be getting raises and getting bigger bonuses and profit sharing checks.

If we take concessions, what will make us any different from any other non-union company, in fact they will most likely be making more money, with better benefits then we will. They will also still have their 401k and we will still not be able to retire with benefits that were negotiated for us, some may never see it.
 
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truckerboy said:
I dont think there bluffing.i think they will do it...
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That's exactly what they want you to think! They're goung to do what they want...concessions or no concessions.Do you think that if you give concessions that they will care about you? Look what actually happened already... they tried taking money away from you to give to Judy and look what happened over at YRC...they not only gave once...not twice but three times...and look at how they are being treated.
 
truckerboy said:
Just saying....if abf gets some of the concessions to lower frt prices.i think abf will haul more frt and kick some ass.and grow this s.o.b.rather we like it or not its going to change
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If ABF gets concessions...nothing changes except for the fact that the working man loses.Don't you not think that the non union companies want us to take concessions too...this way they get to lower their workers pay...why do you think that even Conway is speaking up for ABF? Life in the freight business will be the same...the only difference...we will be getting less.

The non unions will always set their wages to compete with union wages but will always be lower and that is a fact!
 
ABF warns of major network changes if it can't lower labor costs and gain flexibility
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Now that's a great headline... I bet that get's them 100 that will vote in their favor right off the bat!
 
Here's my opinion:



No Concessions Period...No Means No!!!!!


Look around...just look what happened after we voted down the wage decrease...they gave Judy a raise and buy Panther! Think about it...just what does that tell you?
 
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I just want to address the Panther deal for a second. I do not see buying Panther as a slap in the face if it was a good purchase for the company. In fact I see it as a reason for us to win a better contract because they now have another source of cash flow and profits to spread around.
 
ABFer said:
I just want to address the Panther deal for a second. I do not see buying Panther as a slap in the face if it was a good purchase for the company. In fact I see it as a reason for us to win a better contract because they now have another source of cash flow and profits to spread around.
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Very well said ABFer!!!
 
Joe the plumber said:
ABF has too much capacity in the system. McReynolds will do what CEO's do..reduce terminal capacity, fleet and man power..sooner or later after concessions

Like Bill did​
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Like Bill did...that's what you want...don't you? For us to take concessions like Billy boy got accomplished! Your hero Bill...I sure don't see you putting all those posters straight over there on the YRC forum on that thread entitled: "Just encase you were worried about old Bill Z" on just how smart your hero Zollars is. Why is that Joe? I'll tell you why...they'll throw you around like a wet noodle all over that thread...and you know it!
 
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