Teamsters, Car Haulers Reach Agreement, Averting Strike

ARLINGTON, Va. -- The Teamsters and 17 unionized car-hauling trucking companies announced agreement Wednesday morning on a four-year contract that both sides said raises wages and benefits for drivers and averts a nationwide strike.

The agreement will be reviewed by each of the union's 85 car-hauling locals and will then be submitted to the rank and file.

Teamsters officials said they hope for a ratification vote within 10 days.

"We are especially pleased that a strike has been averted, and that a disruption of service to our customers has been avoided," said R. Ian Hunter, executive director of the National Automobile Transporters Labor Division, which negotiated for the companies.

Union drivers will get a 5% increase in wages the first year of the contract, to be followed by 4% raises in years two through four, according to Teamsters spokesman Chip Roth. In addition, the drivers will receive a $1,500 bonus the first year, with an additional bonus to come later, he said.

Teamsters in the automobile-carrier sector of the industry now earn an average of $55,000 a year, according to union figures.

The new contract will guarantee that car-hauling drivers remain the highest paid in trucking, Hunter said.

Improvements in pension and medical benefits also are part of the package, both sides said.

Hunter also said the agreement prevents nonunion truckers and the railroads from "further encroaching upon on our existing business."