The International Brotherhood of Teamsters said its members have ratified the new five-year National Master Freight Agreement (NMFA) by a vote of 84%.
The NMFA covers 65,000 Teamsters employed by four major LTL carriers – ABF Freight System, Roadway Express, Yellow Freight and USF Holland, as well as 20,000 member-employees of smaller carriers.
The new contract adds $2.25 over the life of the contract to the $19.90 average hourly wage paid to LTL drivers and cargo handlers, costing the affected LTL carriers an estimated $1.7 billion.
The new deal also boosts health and pension benefits by $3.10 an hour and includes no worker premiums and no co-payments by union members for medical service, the Teamsters said.
The contract also bars employers from subcontracting work to Mexican carriers. And it mandates the purchase of air-conditioned cabs for drivers on city routes after April 1, along with walk-in sleeper cabs for Class 8 vehicles, the union said.