ABF Freight, one of YRC's top competitors and the largest subsidiary of Arkansas Best Corp , had filed suit against the Teamsters union and YRC, charging violations of a collective bargaining agreement known as the National Master Freight Agreement which covers most unionized trucking employees in the United States.
ABF had said it was seeking $750 million in damages and to have contract amendments benefiting YRC declared null and void.
"The agreement we negotiated in good faith with the union was ratified by our employees who have remained committed to our company, and our customers," Mike Smid, president-YRC Inc and chief operations officer at YRC Worldwide, said in a statement.
The company has been struggling to stave off bankruptcy under a significant debt load and competitive pressure.
In October, it said it had achieved $350 million in labor concessions with the International Brotherhood of Teamsters to help keep it afloat.
"We are disappointed in this outcome and continue to believe that our November 1 lawsuit is strong," ABF said on its website. The company said it is considering steps including a possible appeal to the United States Court of Appeals for the Eighth Circuit.
The Nov. 1 case was filed in U.S. District Court for the Western District of Arkansas, Fort Smith Division. (Reuters)
