For the second time, YRC Worldwide employees in Teamsters Local 710 in Chicago rejected wage and benefit cuts proposed by the company and union, a dissident labor group reports. The vote yesterday complicates the trucking company’s efforts to roll out an agreement claimed to save it more than $800 million by the end of 2010.
Dockworkers and janitors in the Chicago local rejected the contract proposal in a 495-244 vote, the Teamsters for a Democratic Union reports on its Web site. Office workers represented by the local supported the agreement 59-46, TDU said. Local 710 did not post election results on its Web site.
The local in August was one of a few locations that rejected the joint plan to cut wages by a total of 15 percent and suspend YRC Worldwide’s contributions to pensions for 18 months. The majority of YRC Worldwide’s 35,000 Teamsters approved the deal negotiated by the company and union leaders.
However, not all the company’s Teamsters belong to the same bargaining unit or are covered by the company’s main contract, the National Master Freight Agreement. That led to a second round of voting at certain locations as the company and union try to put an agreement calling for “equality of sacrifice” into effect across YRC Worldwide.
Workers at regional trucking subsidiary New Penn also rejected the plan in August, but accepted it in a second round of voting in September amid concern that YRC Worldwide might shut down the northeastern carrier if the package was not approved.
Debt-laden YRC Worldwide has won 11 amendments to its credit agreements while restructuring its long-haul business and shedding thousands of jobs.
Contact William B. Cassidy at wcassidy@joc.com.