YRC Worldwide is once again contributing to Teamsters pensions, but at much lower level than it did before suspending those contributions in July 2009.
The struggling less-than-truckload operator is contributing 25 percent of the amount it paid to Teamsters union multiemployer pension funds in July 2009.
Starting this month, the $4.3 billion company will make about $21 million in pension contributions per quarter, according to Wolfe Trahan estimates.
The pension contribution suspension, which lasted almost two years, was part of a series of agreements with the Teamsters that helped YRC avoid bankruptcy.
YRC Teamsters employees agreed to the suspension and a 15 percent wage cut that helped the company save more than billion dollars during the recession.
The company agreed to resume contributions at a reduced rate this month in return for more concessions approved by its Teamsters employees last October.
Those concessions will keep the reduced pension contributions and wage cuts in place through 2015, depending on the company’s ability to restructure its finances.
That pact would gain the company hundreds of millions in additional savings.
YRC Worldwide is working to complete the financial restructuring by July 22.
Contact William B. Cassidy at firstname.lastname@example.org.