A pay raise for union members, more sick and holiday time, and a prohibition against "invasive technology" are all parts of a tentative contract agreement between ABF Freight Systems and the International Brotherhood of Teamsters.
"With this new agreement, we have reset the standard and charted a new course for the entire freight industry," Teamsters General President Sean M. O'Brien said in a statement released Friday.
The new 5-year contract was endorsed by union leadership recently and will go to local unions for voting and possible ratification.
The process is overseen by the Teamsters and is expected to take a few weeks.
The national contract runs from July 1 through June 30, 2028. It covers the more than 8,500 union members -- truck drivers, dock workers and other members -- who work for Fort Smith-based ABF Freight, a division of publicly traded logistics company ArcBest.
In a filing with the Securities and Exchange Commission, ArcBest said ABF's goal has been to reach a fair agreement that pays market-based wages and benefits, allowing the company to share its success, while giving it the opportunity to grow and make necessary investments in the business. The company noted the wage increase will help driver retention and recruitment in the face of driver shortages.
The new contract includes a $3.50 an hour raise effective July 1 for union members. With subsequent annual raises, the total comes to $6.50 and hour over the next five years. The teamsters note the initial raise is more than the entire wage increase over the course of the previous contract.
Other components include the addition of Martin Luther King Jr. Day to the contract's paid holidays, along with two more sick days, bringing the minimum number of sick days available from five to seven.
According to the union, the deal also prohibits the use of "inward-facing cab cameras, audio recorders, body sensors and biometric technology" in vehicles driven by union members.
It also has provisions against autonomous vehicles or freight transportation without drivers/operators. The ABF filing with the SEC didn't mention these aspects of the proposed contract. When asked for comment regarding these parts of the contract, ABF declined to comment further.
Shares of ArcBest closed at $88.23, up 48 cents or less than 1% in trading Friday on the Nasdaq. Shares have traded as low as $66.35 and as high as $104.87 over the past year.