Arkansas Best Freight's biggest competitor on brink of bankruptcy

Arkansas Best Freight's biggest competitor is on the verge of collapse, but a deal with the Teamsters union could save 40 thousand jobs. ABF is based in Fort Smith. The Yellow Roadway Corporation is a freight company based in Overland Park, Kansas. facing economic hardship, the company has reached an agreement with union leaders for a 10 percent pay cut across the board. but that doesn't mean the employees won't benefit.

"Through this plan we have created a trust so the members get a 15 percent stake in the company," Teamsters spokesman Brett Caldwell told 5NEWS.

Union employees won't be the only ones tightening their belts. non-union employees will also be asked to make an equal sacrifice. There will be ten percent less in their paychecks. a spokesman for the international brotherhood of teamsters says a similar offer has not been extended to arkansas best freight at this time and the carrier doesn't seem to want one.

This statement was released Friday: "ABF has reviewed the details of the agreement between YRC Worldwide and the international brotherhood of teamsters. We do not believe that agreement is appropriate for our company. We are in the midst of evaluating its impact on our employees, our cost structure and our competitiveness."

Some have speculated that YRC will significantly undercut abf's rates to survive. but Tteamster spokesman Brett Caldwell says that's not the case.

"We want YRC jobs to be protected we want ABF jobs to be protected. In no way would we do this program in order to undercut another union employer."

Caldwell insists that YRC's survival is in Arkansas Best's...best interest.

"If yrc has problems the financial pressure is on ABF as a surviving company for those pension funds would be tremendous."

YRC worldwide teamsters will still have to vote on the contract changes which will likely be approved and take effect January first 2009.

ABF's statement went on to say that they will always act in the best interest of the company and work to ensure the preservation of employee jobs.