William B. Cassidy | Mar 10, 2010 11:15AM EST
Teamster employees at YRC Worldwide subsidiary Reddaway this week turned down a proposed contract that included wage and benefits cuts.
The Teamsters union confirmed its members at Reddaway rejected the proposed contract in a vote that began March 1 and was tallied March 8.
It was the second time Reddaway Teamsters rejected the 15 percent wage cut negotiated by the International Brotherhood of Teamsters and YRC Worldwide last year to help save the nation's largest trucking operator.
A spokesman for the international union said it is still determining what its next step will be at the Clackamas, Ore.-based carrier.
Most of YRC Worldwide’s Teamsters approved the wage cut and an 18-month suspension of pension plan contributions last August. The agreement will save YRC more than $1 billion through 2013.
Not all of YRC Worldwide’s Teamsters work in the same bargaining unit or under the National Master Freight Agreement though, and the company and union have had trouble getting some Teamsters to agree to concessions.
Teamsters at Northeastern regional carrier New Penn at first rejected the concessions before approving them in a second round of voting.
In Chicago, drivers in Local 705 approved a modified concession plan after three rounds of voting, while Local 710 dockworkers rejected it.
At Clackamas, Ore.-based Reddaway, Teamsters claimed their wages and benefits are lower than those in the NMFA, and the concessions would place a greater burden on them than on Teamsters at other YRC subsidiaries.
Their last contract expired Dec. 31, but its terms were extended.
Contact William B. Cassidy at wcassidy@joc.com.
