Teamsters President James Hoffa calls it “unconscionable” that Kansas-based YRC would pursue an acquisition while ABF and the Teamsters Union were in “sensitive negotiations” on a new labor deal.
The parent of ABF Freight Systems Inc, Arkansas Best Corp., confirmed to the Kansas City Business Journal late last week that Arkansas Best rejected an overture from YRC to acquire Freight Systems. But the International Brotherhood of Teamsters is still fuming over the timing of YRC’s attempt to buy ABF.
Hoffa criticized YRC for even considering such a big financial outlay before first restoring the wage and pension cuts union members agreed to when the company was struggling financially.
In Hoffa’s statement, he said, ““We have seen this kind of arrogance from YRC before. We thought they had finally learned the lessons of past management catastrophes. Unfortunately it appears they have not.”
In this week’s news, Bloomberg quotes a financial analyst as saying he doesn’t think YRC could handle the debt associated with an ABF buyout.
The analyst says, “It just doesn’t make any sense.”
Even so, Bloomberg reports YRC chief executive officer James Welsh says the company is still interesting in acquiring ABF.