Arkansas Best Corporation Announces First Quarter 2010 Results

Arkansas Best Corporation today announced a first quarter 2010 net loss of $21.4 million, or $0.85 per share, compared to a net loss of $18.2 million, or $0.73 per share in the first quarter of 2009.

"Despite some signs of improvement in our nation's economy resulting in the stabilization of our business, Arkansas Best's first quarter results illustrate the ongoing effects of low freight levels combined with a weak pricing environment. We have continued our focus on long-term profitable growth and the customer-service-level commitments it takes to accomplish this objective," said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. "We are encouraged by the first quarter increases in ABF's tonnage versus very low totals last year. However, in order for ABF's operating results to improve in a meaningful way, we need further increases in freight demand, strong improvements in pricing and the positive financial impact of wage concessions." Full report.......

Teamsters Praise Legislation To Stop Worker Misclassification

Teamsters General President Jim Hoffa praised legislation introduced today that would make worker misclassification a violation of federal labor laws, increasing penalties for companies found to improperly classify workers as independent contractors.

"Workers misclassified as independent contractors receive no protection from workplace health and safety laws, no legal rights to equal opportunity in the workplace, no rights to job-protected family and medical leave," Hoffa said. "Their rights to form a union are also denied. These employers are clearly violating federal labor laws and ripping off the American taxpayer. They must be held accountable."

The legislation is sponsored by Sen. Sherrod Brown, D-Ohio, and by Rep. Lynn Woolsey, D-Calif.

By misclassifying workers as independent contractors, companies avoid withholding income taxes and paying Social Security and Medicare taxes. Each year, more than $4.7 billion in federal income and employment tax revenue is lost due to misclassification, and billions more are lost at the state level. Companies that misclassify workers save up to an estimated 30 percent on payroll costs, gaining an unfair advantage over their more responsible competitors.

Hoffa also praised other efforts in the Obama administration to crack down on misclassification, an increasingly troubling practice by companies to avoid their fair share at a time when local, state and federal governments are cutting services and jobs due to dwindling tax revenue.

Rep. Jim McDermott, D-Wash., and Sen. John Kerry, D-Mass., have introduced legislation to close the tax loopholes that let businesses off the hook for misclassification. Also, the IRS is undertaking a three-year effort to audit employers to identify cases of misclassification. The Obama administration has proposed a new Labor Department initiative to step up enforcement and help states that are doing a good job of going after violators. Rep. Jerrold Nadler, D-N.Y., will soon be proposing a measure to address the widespread misclassification of port truck drivers.

Last week, the Nebraska Legislature passed a bill making it illegal for employers to improperly classify workers as independent contractors, and many other states are undertaking efforts to crack down on the practice.

FREIGHT LEADERS OVERWHELMINGLY ENDORSE ECONOMIC RELIEF PLAN

On Monday, April 19, leaders of freight local unions from across the country overwhelmingly endorsed an economic relief plan for ABF Freight System, Inc. that will protect thousands of Teamster members’ jobs and their health, welfare and pension benefits.

“Local union leaders understand that we need to take a bold step to help ABF get through this terrible economy and that we must act now to prevent far worse problems down the road,” said Tyson Johnson, Director of the Teamsters National Freight Division. “No one wants to see wage cuts, but this agreement protects our ABF members’ jobs and their health, welfare and pension benefits.” Full Story........

Memorandum of Understanding on the ABF Freight System, Inc. Wage Reduction - Job Security Plan

Summary of the Proposed ABF Economic Relief Plan

Questions and Answers for ABF Members

TEAMSTERS, ABF REACH TENTATIVE AGREEMENT ON PLAN TO PROTECT MEMBERS’ JOBS, BENEFITS

The Teamsters National Freight Industry Negotiating Committee (TNFINC) and ABF management reached a tentative agreement today on a plan to provide economic relief to ABF that will protect thousands of Teamster jobs and protect workers' health, welfare and pension benefits.

Details of the plan will be presented Monday, April 19 to leaders of local unions that represent ABF members. The leaders will be asked to endorse the plan at the meeting in Chicago. If leaders endorse the plan, members will then have the opportunity to vote on whether to approve the plan.

The April 19 meeting will take place from 11 a.m. to 1 p.m. Central time. If the leaders endorse the plan, information about the plan will be posted on the Teamster web site, www.teamster.org.