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YRC Worldwide Inc. (YRCW) Chief Executive Bill Zollars called a legal challenge to the struggling trucking company's critical new labor concessions meritless on Friday, saying YRC likely will counter sue in the case. ABF Freight System Inc., the largest subsidiary of YRC Worldwide rival Arkansas Best Corp. (ABFS), filed a lawsuit this week against YRC and the International Brotherhood of Teamsters. ABF contends YRC's latest union concessions, as well as two previous rounds of concessions, violate the collective bargaining agreement governing the bulk of employees
at unionized U.S. trucking companies, tilting the playing field in YRC's favor in terms of costs.
"There's a very high likelihood" that YRC will sue ABF Freight as part of its response, Zollars said in an interview. "We think the suit is completely without merit, and we're approaching it on that basis as we defend ourselves here."
YRC said ABF isn't a party to YRC's labor contract and the suit "is in direct contradiction to laws governing labor contracts." The Teamsters have called the complaint frivolous..............
YRC Worldwide CEO Indicates Co. May Counter Sue ABF Freight
at unionized U.S. trucking companies, tilting the playing field in YRC's favor in terms of costs.
"There's a very high likelihood" that YRC will sue ABF Freight as part of its response, Zollars said in an interview. "We think the suit is completely without merit, and we're approaching it on that basis as we defend ourselves here."
YRC said ABF isn't a party to YRC's labor contract and the suit "is in direct contradiction to laws governing labor contracts." The Teamsters have called the complaint frivolous..............
YRC Worldwide CEO Indicates Co. May Counter Sue ABF Freight