YRC Won't Seek Bailout

YRC Worldwide did not apply for relief under the Troubled Asset Relief Program, the Associated Press reported June 12.

The nation’s third-largest trucking company said in May it planned to seek $1 billion from the Treasury Department to help fund an estimated $2 billion in annual Teamsters union retirement payments over the next four years.

However, the company told customers June 11 it did not follow through on those plans and does not intend to.

In May, YRC Chief Executive Bill Zollars told the Wall Street Journal he hoped to spark a conversation with lawmakers about the company's hefty pension obligations.

In a letter e-mailed to employees Thursday for distribution to customers, the company said it "has no current intentions of applying for TARP funds."

On the other hand, the letter also said the company still wants “to address the structural inequities created by multi-employer pension plans." YRC contributes approximately $540 million each year to 36 multi-employer plans, which support many retirees who never worked for YRC but for other companies that are now out of business.

Contact Thomas L. Gallagher at tgallagher@joc.com.