MEMORANDUM

TO: ALL LOCAL UNIONS SIGNATORY TO THE 2018 – 2023 ABF FREIGHT

NATIONAL MASTER FREIGHT AGREEMENT

FROM: John A. Murphy, National Freight Director

DATE: May 25, 2022

RE: ABF-NMFA Article 33, Sec. 4 - COLA

Based on the Consumer Price Index (CPI-W) figures released February 10th, by the
Bureau of Labor Statistics, the Teamster membership covered by the 2018 – 2023 ABF
NMFA will be due a cost-of-living allowance per Article 33, Section 4 when the next
scheduled hourly and mileage increase takes place on July 1, 2022.

As you know, our members covered by this agreement are eligible for an annual COLA
in 2022 that allows a one cent ($0.01) per hour and .25 mils per mile increase for every
0.2-point increase in the index in excess of 3.5% and at least totaling $0.05. Reaching an
index level of 276.296 in January 2022, the CPI-W increased 12.065 points above the
January 2021 Index plus 3.5%, and that translates to the following COLA increases:

$0.05 per hour
1.250 cents per mile

Please note these increases are in addition to the negotiated increases per the 2018 –
2023 ABF NMFA settlement which are effective July 1, 2022:

$0.50 per hour
1.250 cents per mile

Essentially, this means that hourly wages are scheduled to increase by $0.55 per hour
and 2.500 cents per mile on July 1, 2022. The annual ABF COLA increase is contractually
capped at $0.05 cents per hour. As previously indicated, however, qualified ABF workers
have received a profit-sharing bonus this year in the amount of 3% of their 2021 W-2
earnings.

Please note this is the first wage COLA payable to our ABF freight members since 2006.

JAM/ae

cc: Regional Freight Coordinators

*****

(Below is a printable version of the original memo.

In case of a discrepancy, please refer to the original.)

CENTRAL STATES PENSION FUND WILL SUBMIT APPLICATION TO PBGC FOR SPECIAL FINANCIAL ASSISTANCE IN APRIL

On April 1, 2022, Central States Pension Fund became eligible to submit an application to the federal government for Special Financial Assistance (SFA) under the American Rescue Plan Act of 2021 (ARPA). The SFA program (sometimes referred to as the "Butch Lewis Act") was enacted into law under ARPA in March 2021, thanks in large part to years of tireless advocacy by participants of Central States and other troubled multiemployer pension plans. We expect to submit our application before the end of April.
Upon receiving this assistance, our Fund will be in a much stronger financial position. The SFA is expected to allow Central States to remain solvent and continue paying all benefits through at least 2051, and likely longer.

TIMING OF OUR SPECIAL FINANCIAL ASSISTANCE APPLICATION

The federal Pension Benefit Guaranty Corporation (PBGC) is tasked with overseeing the SFA program, and it estimates that about 200 plans will submit applications for assistance. To ensure the PBGC can efficiently process so many applications, the agency established a specific order in which different "priority qroups" of plans become eligible to apply.

Central States is in priority group three, which puts our Fund in line after plans that are already insolvent, plans that are expected to become insolvent within one year of applying for assistance, and plans that reduced participants' benefits under the Multiemployer Pension Reform Act (MPRA).

The PBGC selected April 1, 2022, as the date when our priority group is allowed to apply. However, we will not be able to apply immediately because the application must be based on the Fund's financial status at the end of the most recent calendar quarter, which is March 31. It will take some time to compile, audit and incorporate these latest quarterly figures into our SFA application. Again, we expect to submit our application before the end of April.

WHAT HAPPENS NEXT ?

We expect the Fund to receive payment of the Special Financial Assistance in one lump sum by the end of 2022, although there are a few factors that could affect this timeline.

The PBGC has up to 120 days to review our application, so, we anticipate a decision from the PBGC in August. As of this writing, 36 plans have submitted applications— 10 have been approved and 26 are under review. Thus far, the PBGC has directed about one-half of the plans submitting an SFA application to withdraw their initial application and resubmit a corrected or amended version, based on specific guidance from the PBGC. This is understandable, considering that SFA applications are very complex and can run hundreds of pages in length. If the PBGC requests that a plan withdraw and resubmit its application, there may be some additional time required for the PBGC to complete its review, though not necessarily another 120 days.

The PBGC has stated that it expects to make payments within 60 to 90 days of approving an SFA application. As of this writing, the PBGC has made all SFA payments within 35 days.

_{ANTICIPATED SFA APPLICATION TIMELINE*}

_{*Based on PBGC approval of application 120 days after submission. Timeline may be extended if PBGC requests windrawal and resubmission of application.}

We will update Local Unions when Central States has submitted its SFA application. We plan to hold a town hall webinar to answer your questions. Updates will also be posted on our website at VoicesForPensionSecurity.com and on our American Rescue Plan Act recorded message hotline at 800-323-7640.
 

VOICESFORPENSIONSECURITY.COM

*****

(Below is a printable version of the original memo.

In case of a discrepancy, please refer to the original.)

TEAMSTERS

National Freight Industry Negotiating Committee

MEMORANDUM

TO: YRC Freight, Holland, New Penn and Reddaway Local Unions

FROM: John A. Murphy, National Freight Director

DATE: March 16, 2022

RE: Teamsters to Receive Bonus Pool at Yellow Operating Companies

Yellow has indicated that it is paying certain bonuses to various Company officers and/or executives. In the last agreement, TNFINC negotiated a "two for one" provision in the national agreement for executive bonuses. Specifically, for every dollar that gets paid in executive bonuses, qualified represented workers get two dollars put into a pool to split up. This year, the Teamster represented employees' pool is $9,879,434.00; with about 20,033 individual eligible members, each member will receive $493.16. The checks to members will likely go out within the week.

*****

(Below is a printable version of the original memo.

In case of a discrepancy, please refer to the original.)

TEAMSTERS

National Freight Industry Negotiating Committee

MEMORANDUM

TO: ALL LOCAL UNIONS SIGNATORY TO THE 2019 – 2024 YRCW NATIONAL MASTER FREIGHT AGREEMENT

FROM: John A. Murphy, National Freight Director

DATE: March 11, 2022

RE: YRCW-NMFA Article 33, Sec. 4 - COLA

Based on the Consumer Price Index (CPI-W) figures released February 10th, by the Bureau of Labor Statistics, the Teamster membership covered by the 2019 – 2024 YRCW NMFA will be due a cost-of-living allowance per Article 33, Section 4 when the next scheduled hourly and mileage increase takes place on April 1, 2022.

As you know, our members covered by this agreement are eligible for an annual COLA in 2022 that allows a one cent ($0.01) per hour and .25 mils per mile increase for every 0.2-point increase in the index in excess of 3.5% and at least totaling $0.05. Reaching an index level of 276.296 in January 2022, the CPI-W increased 12.065 points above the January 2021 Index plus 3.5%, and that translates to the following COLA increases:

$0.60 per hour

1.500 cents per mile

Please note these increases are in addition to the negotiated increases per the 2019 – 2024 YRCW NMFA settlement which are effective April 1, 2022:

$0.40 per hour

1.00 cents per mile

Essentially, this means that hourly wages are scheduled to increase by $1.00 per hour and 2.500 cents per mile on April 1, 2022.

Please note this is the first wage COLA payable to our Yellow freight members since 2006. The $0.60 cents payable on April 1, 2022, will be the largest annual increase our members have received since 1981 when the COLA paid 77 cents.

*****

(Below is a printable version of the original memo.

In case of a discrepancy, please refer to the original.)

To: Holland Local Unions
From: John A. Murphy, National Freight Director
Date: February 10, 2022
Re: Dispatch Problems

It has been brought to our attention that Teamster represented drivers at Holland are not being properly dispatched, are losing work opportunity and/or not being dispatched in a timely fashion, all while the Company uses purchased transportation. Please be advised that TNFINC is investigating this matter and that such issues WILL BE ADDRESSED. If Local Unions have experienced these problems in recent days, please e-mail a brief detailed description of the situation (including the specifics of the contractual violation) to the freight division ASAP (aernest@teamster.org). Please also send copies of any grievances that have been filed.

cc: Regional Coordinators

TNFINC Legal Counsel

*****

(Below is a printable version of the same memo.)

TO: ABF Freight Local Unions
 

FROM: John A. Murphy, National Freight Director
 

DATE: February 1, 2022
 

RE: Profit Sharing Bonus

Today, ABF announced that it achieved an 89.9% operating ratio for 2021. As a result, the profit-sharing provisions of the 2018-23 ABF NMFA have triggered. Specifically, qualified members (generally those employees who were on the seniority list from January 1, 2021 to December 31, 2021) will receive a bonus of 3% of their 2021 earnings. This is the third year in a row that ABF Freight members have received a profit-sharing bonus. This year’s bonus, however, is the largest so far. The Company’s success is due to the hard work and dedication of ABF’s Teamsters who worked through the challenges of 2021. The profit-sharing bonuses will be paid on or about February 16.

*****

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