YRC Worldwide Chairman, President and CEO apologized not once but twice to Teamsters General President James P. Hoffa and union employees.
The first apology came after an article in the July 20 Kansas City Business Journal reported Zollars as saying YRC’s nonunion workers probably won’t take further cuts in pay proposed for union workers.
“YRC is committed to the principle of ‘equal sacrifice’ and will require that our nonunion employees take as much, if not more, cuts in wages and benefits as provided by our union employees,” Zollars wrote in a July 21 letter to Hoffa and YRC employees.
The company’s union workers are voting on a proposed 15 percent wage cut and 18-month blackout on pension contributions. Ballots are due Aug. 6.
Zollars then apologized for a suggestion on the FAQ section of YRC’s Web site that savings from the proposed wage and benefit cuts would be passed on to shippers.
“The intent of the cost savings is to provide the companies with sufficient operating cash to survive the worst economic recession in recent history,” he said in the letter.
He also retracted an July 20 announcement that YRC would enter a home-delivery alliance with Specialized Transportation, or STI, linking YRC’s LTL network with STI’s “final mile” home and office delivery service.
“YRC will not subcontract bargaining unit work” in violation of its contract or its new agreement with the Teamsters, which gives the union more of a say in its operations, Zollars said.
"We recognize that, with more than 8,000 Teamsters on lay-off, residential delivery work must be offered to the bargaining unit."
Contact William B. Cassidy at email@example.com.