YRC Worldwide is seeking more than an extension of current concessions in its proposal to Teamster employees. The trucking operator wants greater flexibility to compete in a less-than-truckload market now even more dominated by non-union competitors FedEx Freight, Con-way Freight and Old Dominion Freight Line, which is fast expanding its geographic reach.
Here are the chief components of the extension agreement YRC Teamsters are set to vote on this month:
* Wage reduction of 15 percent kept in place through 2019. No wage increases through 2015, though qualified employees will receive a $750 "ratification bonus" next year and an additional $750 in 2015. On paper, wages would go up 40 cents per hour a year starting in 2016 — but that would be a 34 cent per hour after the 15 percent wage cut.
* Pension and 401(k) contributions kept at 25 percent of the 2009 rate through 2019.
* Health and welfare benefits wouldn't increase until 2015, when they would rise by 85 cents per hour and climb by $1 an hour in 2016, 2017 and 2018.
* A profit-sharing plan yielding bonuses of 1 to 3 percent would kick in starting in 2016, assuming the company meets profitability targets. The bonuses would be tied to the operating ratios of YRC companies.
* Purchased third-party transportation up to a maximum of 6 percent of total freight miles at YRC Freight, with preference given to union carriers. Intermodal and purchased transportation combined could not exceed 26 percent of freight miles. The company said intermodal rail currently accounts for 23 to 24 percent of total freight miles at the long-haul carrier.
* Utility drivers could be used in areas where YRC Freight has difficulty hiring road drivers. That would blur distinctions between road and local drivers.
* Interline subcontractors could be used to handle freight in service areas where YRC Freight has low business volumes and density.
The proposed contract extension would also impose a uniform attendance or absentee policy throughout YRC Freight, while reducing or postponing some vacation benefits and offering employees cash in lieu of vacation time during certain periods of the year.
A summary of the agreement is available on the Teamsters union website.