A Teamster candidate challenging James P. Hoffa took a swing at YRC Worldwide’s board of directors this week, attacking increases in cash retainers for directors.
Sandy Pope, president of Teamster Local 805 in New York City, wants YRC’s new board of directors to drop the increase in cash retainers and bonuses.
In an Aug. 31 filing with the Securities and Exchange Commission, YRC’s new board said it would pay each director an annual cash retainer of $75,000. That’s a $25,000 annual increase from the previous year and the previous board of directors, according to data in YRC Worldwide’s April 29 amended 10-K filing.
Cash bonuses awarded to most committee chairman were doubled from the previous year to $10,000. The new directors may also get stock bonuses.
“This is an insult to hard working Teamsters who have given up 15 percent of their wages and over 75 percent of their pension contributions,” said Pope.
YRC Worldwide, the second largest less-than-truckload company in the U.S., named a new board of directors in July when it completed a sweeping restructuring.
Pope castigated YRC Worldwide’s new board shortly before the company’s shareholders are set to meet Sept. 16 to approve the trucker’s restructuring.
She is challenging Teamster leader Hoffa and Wisconsin Teamster leader Fred Gegare for the union’s presidency, a post Hoffa has held since 1999. Ballots will be mailed to Teamster members Oct. 6, and counting will begin in Alexandria, Va., Nov. 14, according to the Teamster election supervisor’s office.
Hoffa negotiated three rounds of concessions with YRC Worldwide that saved the company, one of the largest Teamster employers in trucking, from bankruptcy.
The labor concessions — cemented by the $500 million restructuring — are expected to save YRC Worldwide more than $1 billion through 2015. Those concessions include a 15 percent wage cut introduced in 2009 and a 75 percent reduction in company pension contributions from July 2009 levels.