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Teamsters, USF Holland Negotiate Agreement for Expansion Into Northeast

Teamsters, USF Holland Negotiate Agreement for Expansion Into Northeast

USF Red Star Workers to Receive Preferential Hiring, Other Benefits

June 23, 2004

(Washington, D.C.) – The International Brotherhood of Teamsters today announced an agreement with USF Holland concerning the company’s entry into the Northeast LTL market, a sector formerly occupied by USF Red Star. The agreement follows USF Red Star’s sudden and abrupt closure in mid-May. USF Red Star workers will receive preferential hiring by seniority at USF Holland’s eight new terminals in the Northeast and all that follow.

The opening of these terminals is expected to create more than 500 Teamster jobs for former USF Red Star workers in the coming months. In addition, USF Holland expects to add 500 to 700 new Teamster jobs at current locations in the Midwest throughout 2004. Also, the agreement establishes an election protocol for USF Holland office workers seeking Teamster representation.

"We have negotiated an agreement that gives Red Star workers preferential consideration for these jobs and that they are hired back in seniority," said Tyson Johnson, Teamsters National Freight Director. "Further, this agreement increases the starting wages these members would normally achieve under the National Master Freight Agreement."

According to the agreement, former USF Red Star workers will be paid a significantly higher rate than what is normally provided to new hires as called for in the NMFA and on a faster schedule. Further, the workers will participate in the same health and welfare and pension funds as they were in as USF Red Star employees—an agreement that benefits the workers and funds that have been adversely affected by the termination of USF Red Star workers.

In addition to receiving preferential hiring at their former USF Red Star location, these workers will receive preferential hiring at all USF Holland locations and will be paid at the contract rate for new USF Holland employees.

"This is a step in the right direction for those workers who were harmed by USF Red Star’s closure," said Jim Hoffa, Teamsters General President. "We will continue our fight for USF Red Star workers and their families."

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