YRC Worldwide (YRCW) Teamsters Employees to Vote on Contract Modifications
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YRC Worldwide (Nasdaq: YRCW) announced that its Yellow Transportation, Roadway, Holland and New Penn business units have asked their union employees represented by the International Brotherhood of Teamsters to modify the company's current labor agreements.
Bill Zollars, Chairman, President and CEO of YRC Worldwide, commented, "During this economic recession, we have already taken a number of steps to improve our financial and competitive position, as we continue aggressive short-term actions to meet the current environment as we plan for our long-term success. We are in the process of working with our union partners to modify the terms of our labor contract in a way that allows us to be more competitive with non-union carriers in the short-term and, at the same time, protect and sustain the financial health of our dedicated employees and our company going forward."
While working on a longer-term solution to this issue, YRC Worldwide is seeking immediate cost savings through proposed changes for the remainder of the contract including:
-- 10% reduction in all wages paid, inclusive of scheduled increases
-- Suspension of Cost of Living Adjustments (COLA)
In exchange, Teamsters employees would receive a 15% ownership stake in YRC Worldwide allowing them to share in future company performance through stock price appreciation. The details of this plan are still being finalized. Contributions to the health, welfare and pension plans would continue as previously negotiated.
The estimated cost savings from these modifications is approximately $220-$250 million annually. The company expects that a ratification vote on the proposed modification will occur prior to the end of the year with an expected effective date of January 1, 2009.
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yrc
please, this is such a farce, the lazy no good teamsters have to bail all them pompus high paided execs, out. how smart are they now? 28 years 4
Boom years
What did YRC give the contract employee in the profit years? SQUAT !!, but they gave themselves millions, remember the 14 million to the last CEO fo 2.5 years of service. He laughed all the way to WM in Houston.
zollers
From what I understand Zollers and crew is giving back at least 10% his statements on it so far indicate that. My question is since this is a negotiation on the Master Freight contract but at this point only affects teamsters working for YRCW who gets to vote? Just YRCW members or all teamsters working under this contract? If this passes you can bet other LTL trucking companies will come running to the table. If only YRCW employeed teamsters get the vote it will affect all teamsters under this contract in the long run. If all teamsters under this contract get the vote will they say yes knowing that thier companies will be asking for concessions soon?
work
we all need to give a little bit now and make this company work for our brothers and sisters future
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Zollars
badjoke on Dec 28, 2009 01:55 AMnoneed4aname, Zollars hasn't given up even a penny. The Teamsters leadership is a joke, who would want to join them after what they have done to the rank and file, with all the vote till you get it right and taking away from the Chicago locals because they didn't vote the way the co and Hoffa wanted, they have made the Teamster Union a JOKE!!