ABF Freight to Pay 2019 Profit-Sharing Bonus to Eligible Union Employees
Bonus payment for reaching 95.2 percent operating ratio achieved in 2019
Payment to all eligible union employees, representing nearly all union employees, is first in company's history
Jan 30, 2020, 16:15 ET
FORT SMITH, Ark., Jan. 30, 2020 /PRNewswire/ -- ABF Freight, the less-than-truckload carrier of ArcBest® (Nasdaq: ARCB), announced it will pay a profit-sharing bonus to all qualifying union-represented employees in return for the company achieving a 95.2 percent operating ratio in 2019.
"Returning ABF to historical margins has been a long-term goal, and the bonus payment is something we have hoped to do for some time," said ABF President Tim Thorne. "Thanks to successful yield initiatives, focused account management and prudent cost management, we reached the required levels to pay the bonus and we thank all of our employees for their hard work and dedication to the company and our customers. This is a proud day for ABF."
The profit-sharing bonus for employees represented by the International Brotherhood of Teamsters, ABF's largest bargaining group, will be 1 percent of qualifying employees' W-2 earnings as specified in the 2018 ABF National Master Freight Agreement ratified in July 2018. Employees in smaller union groups will receive similar payments. The total number of employees who will receive the bonus is approximately 7400.
This is the first time in ABF's nearly 100-year history that a profit-sharing bonus will be paid to all eligible union-represented employees in return for hitting specific financial targets. Only a small group is ineligible this year, having been paid last year. Operating ratio refers to the ratio of operating expenses to operating revenue and is generally considered a measure of profitability and efficiency in the trucking industry. According to terms of the collective bargaining agreement with the IBT, the bonus will be paid by check within 60 days of the 2019 calendar year-end.
ArcBest Chairman, President and CEO Judy R. McReynolds noted that ABF, with its deep and trusted customer relationships, remains the growth engine for ArcBest as it delivers innovative logistics solutions across the supply chain.
"Our employees go above and beyond every day for our customers, and we are truly glad to be able to share the success of ABF's performance in 2019 as envisioned in our union agreements," McReynolds said.
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ArcBest® (Nasdaq: ARCB) is a leading logistics company with creative problem solvers who deliver innovative solutions. We'll find a way to deliver knowledge, expertise and a can-do attitude with every shipment and supply chain solution, household move or vehicle repair. At ArcBest, we're More Than LogisticsSM. For more information, visit arcb.com.
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