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TForce | NATIONAL TFORCE NEGOTIATIONS KICK OFF
- Thread starter Dockworker
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FreightDriver
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I see they are using the phrase “Master Freight Agreement.” Do they plan to change TForce Freights contract to match that of Master Freight? If so, doesn’t that eliminate seniority by classification and change it to Company seniority? If so I’m a NO Vote! I’m not going to vote for a contract that allows a dockworker with 30 years to displace a road driver with 20 years on the road driver classification.
FreightDriver
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I get that. But some of the threads made it sound like they wanted to go to a contract like ABF’s.
jimmysgotmyback
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Similar contract language makes for an easy merger
FreightDriver
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Good point. Do you see TFI buying ABF and merging with TForce Freight after the contracts are done?
jimmysgotmyback
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Maybe a year or two down the road, but I’m more likely to believe collusion instead of a merger
I really see that happening...just a gut feeling....TFI got plenty of money to burn and a good stake in ArkBest...wow...hang on!
Even if they have the money to buy out of the pension liabilities, they have nothing to trade off to do so.
UPS gave the teamsters 10,000 new members at UPS freight, and 6.1 billion dollars to buy out of the pension liability.
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Depends on who brings what to the table. ABF holds the hammer, so to speak, TFI is an outsider with not a lot to offer but some properties and equipment.
TFI will not get the sweetheart deal they got from UPS, as a publicly traded Company ABF stockholders will have to approve it.
It ain't gonna be cheap...
TFI will not get the sweetheart deal they got from UPS, as a publicly traded Company ABF stockholders will have to approve it.
It ain't gonna be cheap...
It isn't just the stockholders either, they have the pension funds to deal with too.
FreightDriver
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TFII is nearly four times the size of ARCB in market cap.
Market cap doesn't equal cash on hand. UPS did all their transactions with cash. TFI is an ant compared to UPS.
I don't believe TFI has 3 or 4 billion in cash to buy abf and buyout the pensions. So, they would need outside finance. Interest rates are at a 2 decade high. Anything can happen, but the economic environment is not a rosey one .
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FreightDriver
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TFII doesn’t need the cash on hand to make an offer. They can debt finance it. UPS and TFII are two different birds.
TFI International has acquired 31 companies, including 8 in the last 5 years. A total of 4 acquisitions came from private equity firms. It has also divested 2 assets. TFI International's largest acquisition to date was in 2021, when it acquired TForce Freight for $800M.
TFI International has acquired 31 companies, including 8 in the last 5 years. A total of 4 acquisitions came from private equity firms. It has also divested 2 assets. TFI International's largest acquisition to date was in 2021, when it acquired TForce Freight for $800M.
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They are not getting another ltl company the size of ups freight for 800 million. Abf would cost 2.5 billion at least. That doesn't include the pension obligations to the cspf and all the other multi employer pension funds .
FreightDriver
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My prediction. They will buy another freight company and pay more than they paid for UPS Freight. They will likely use private equity to get it done or divest other assets. The fact is they have a 4% stake in ABF and are looking to buy it.
Conway didn't buy Consolidated freight.