Teamsters Ratify Contract With Carhaul Carriers

Five-Year Agreement Protects Health Care and Pensions, Boosts Job Security

WASHINGTON, July 15 -- International Brotherhood of Teamsters General President Jim Hoffa announced today that union members ratified a new contract with major carhaul carriers that will protect health benefits and pensions while providing enhanced job security for Teamster workers.

The contract was ratified 72 percent to 28 percent.

"By ratifying this agreement, our carhaul members have protected the health benefits and pensions they have worked so hard to secure," said Hoffa, who served as Chairman of the Union's National Negotiating Committee. "The industry is facing difficult conditions, and this agreement improves job security, increases wages and provides a strong cost-of-living adjustment. I am most proud of how our members stuck together and beat back efforts by Allied Automotive Group to negotiate a separate agreement."

The previous National Master Automobile Transporters Agreement (NMATA) was negotiated in 1999 and expired at midnight May 31. The new contract with the National Automobile Transporters Labor Division (NATLD) and Allied Automotive Group (AAG) is a five-year agreement.

The new contract increases wages and benefits by 13.4 percent over the term of the agreement and features important protections for Teamster carhaulers, including:

  *     Maintaining strong health benefits. This includes the largest health
        and pension increases ever in carhaul of $3.10 per hour (.60, .60,
        .60, .60, .70) compared to $2.45 per hour in the 1999 agreement;
  *     Wage increases of $1.30 per hour (.40, .40, and .50 in the last
        three years);
  *     A real COLA (cost-of-living adjustment) of $.01 per hour for every
        .1 increase in the CPI (consumer price index) above 3 percent. The
        same language in the 1999 agreement increased workers' wages by
        $0.11 per hour in 2001;
  *     Strong language protecting Teamster work from encroachment from
        cross-border trucking;
  *     Job security enhancements, including the ability of members to
        follow their work when a contracted carrier is replaced;
  *     Jury duty days increased from 10 to 15 per year;
  *     Health and welfare contributions for members on military leave
        extended from 12 to 18 months;
  *     Increased rates for tool allowances, skid drops and flat, zone,
        shuttle, incentive, loading and unloading rates; and,
  *     Protection of the enhanced early retirement and prescription drug
        benefit for retirees that was won in 1999.

On May 31, the Teamsters reached a tentative agreement, which quickly followed a 97-percent strike authorization vote announced on May 21. With rank-and-file members united behind the Teamsters negotiating committee, the employers finally took their concessionary proposals off the table and moved in the direction of the union's demands to secure a contract.

  The union beat back several concessionary proposals including:

  *     Cuts to health care and a cost-sharing arrangement;
  *     A two-tier wage rate for new hires;
  *     A two-tier vacation and sick accrual for new hires; and,
  *     A permanent benefits second-tier for new hires,
  *     A separate agreement for Allied Automotive Group.

"Thanks to all the support of the members, we won a strong contract," said C.B. "Doc" Conder, Teamsters Carhaul Director and Co-Chairman of the Negotiating Committee. "Our next step is to increase Teamster jobs in the carhaul industry."

Founded in August 1903, the International Brotherhood of Teamsters is celebrating its 100-year anniversary as a representative and advocate for working families.