New Penn Teamsters Approve Concessions

Unionized drivers at less-than-truckload carrier New Penn Motor Express, facing possible shutdown, approved concessions sought by financially troubled parent company YRC Worldwide, the Teamsters union and the carrier announced Wednesday.

The vote was the second by workers at Lebanon, Pa.-based New Penn. They rejected a concession package that workers at other YRC operations approved last month and the company sought new balloting, warning that it would merge the business into another unit if the workers did not approve the wage and benefit cuts.

YRC, the country’s largest LTL carrier, is seeking to stave off bankruptcy protection after recording steep losses over the past two years.

The package agreed to by the Teamsters includes a 5 percent wage cut on top of a previous reduction and an 18-month moratorium on pension fund contributions that the company says would save some $45 million a month in costs.

"As employee owners and stakeholders, our union workforce has made difficult decisions and demonstrated their commitment to achieving long-term success for YRC Worldwide. Revisions to the contract enable the company to strengthen its financial position," said Mike Smid, president of carrier YRC and chief operations officer of parent YRC Worldwide.

The union did not immediately release the vote count, saying only that it was approved “overwhelmingly” on the second attempt. The dissident Teamsters for a Democratic Union said it was approved by an 890-329 margin.

Teamsters at long-haul LTL carrier YRC and regional carrier Holland approved the wage and benefits cuts Aug. 7 by a 58.5 percent margin.

Teamsters at regional carrier New Penn, who belong to a different bargaining unit, rejected the proposal.

Ballots were mailed Aug. 19 and counted Wednesday.

YRC Worldwide employs about 35,000 Teamsters at all of its subsidiaries.