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ShareThisChicago Teamsters Reject YRC Cuts
Local 710 dockworkers turn down union-approved plan in second vote
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.
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This should have been an integration issue from the start. The failure of management to properly integrate and eradicate the duplicate efforts of the 2 companies and streamline the freight and lanes is unthinkable. What has started as a fouled up integration has lead to the very real possibility this company will be bankrupted by February unless the lenders decide to play nice. The healthy freight companies are surrounding this company waiting for it to collpase. If this happens this will create rational pricing in the market place and reduce some of the extra capacity in the market place now.
- By freightanalyst on 10/18/09
There is more than 2 billion reasons lost that has created this not so complicated situation.YRC nor the union asked for a Teamster vote as they went on their spending spree early in the Yellow - Roadway merger. Two major players in trucking were left to their own accord for 5 years before management acted to integrate. Once the highly touted executives realized they were drowning in debt they acted in haste to consolidate the two operations but it was too late. Now the course of action is sell/leaseback anything that doesn't move and break the backs of the people who sustained the organizations for decades. No appreciation... just threats by YRC and the locals who misrepresent labor.
- By Transporter1 on 10/17/09
Yet another nail in the coffin for YRC. Will YRC shut down chicago? Or amend yet another covenant to their credit agreements? The end is nearing slow but sure....
- By freightanalyst on 10/16/09
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Edmonton YRC had another vote, in which the union members accepted a changed proposal. As a result, Edmonton terminal will NOT be shutting down. Please correct this reporting, as I see it on here again and again, and the new information is not posted.