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Teamsters say YRC Worldwide may merge regional carrier with long-haul unit unless workers approve wage, benefit cuts
Less-than-truckload carrier New Penn Motor Express may be merged into long-haul operator YRC unless union employees reverse course and accept wage and benefit cuts they rejected earlier this month, the Teamsters union said.
YRC Worldwide plans to merge New Penn into YRC unless the “job security plan” approved by YRC and Holland Teamsters is adopted at New Penn, Teamster executive Tyson Johnson said in an Aug. 17 letter to New Penn Teamsters.
YRC Worldwide, which sought the labor concessions as part of a larger effort to restructure its operations and debt-ridden finances, said it has not filed any change of operations affecting the network status of New Penn.
"New Penn continues to provide superior regional, next-day transportation services to its customers," the Overland Park, Kan.-based company said in a statement.
Teamsters at long-haul LTL carrier YRC and regional carrier Holland approved wage and benefits cuts Aug. 7 by a 58.5 percent margin.
Teamsters at regional carrier New Penn, however, who belong to a different bargaining unit, rejected the proposal.
At an Aug. 11 emergency meeting with the union's negotiating group, "the company indicated that it plans to call for a change of operations in the near future to merge New Penn into YRCW," Johnson wrote in the letter.
"Because the merger could cost hundreds of Teamster jobs, the majority of New Penn local unions have also requested a revote by New Penn members," wrote Johnson, who is co-chairman of the Teamsters National Freight Industry Negotiating Committee.
Ballots would be mailed Aug. 19 and counted Sept. 9, he said.
New Penn, which became part of what is now YRC when Yellow Corp. acquired Roadway in 2003, has long been considered the best of YRC's regional subsidiaries. It employs more than 2,000 workers and has 24 terminals, primarily in the Northeast.
YRC Worldwide employs about 35,000 Teamsters at all of its subsidiaries.
Contact William B. Cassidy at wcassidy@joc.com.
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Well said, JOCommerce. And you are correct, it was Roadway Regional Group, and Caliber Systems (Roadway Services less Roadway Express) was the parent company.
And I also, hope New Penn survives. They are well respected in the LTL freight arena.
- By Schimmel1 on 12/29/09
The hat only holds so many rabbits...
- By JOCommerce on 9/4/09
New Penn's only hope is to have happen to them what happened to Central Freight out of Waco during that time they spent as part of what I think was called Roadway Regional Group or something like that. Namely, New Penn management and other investors need to step up and offer to buy New Penn from YRC. No doubt YRC needs the money for however length of time they have left and it'll relieve YRC of a dissenting (but probably correct) labor component.
Don't any of the New Penn people remember what Roadway Regional did to their former competitor Coles Express, as well as Spartan Express out of S.C. during their time in Roadway Regional? They broke both of them! Central was going to be next until senior management bought it back. New Penn's next unless they get out now. From what I hear it would be a shame, as they're probably the best of the carriers under that leaking YRC umbrella right now and all the good qualities they exhibit will disappear should they be assimilated into YRC. It does seem strange that the Teamsters are making this threat against their own membership while YRC remains silent on this idea.
- By 222-0 on 8/20/09
Tell the union members too little, too late. The combination of idiotic leadership, the economy and the downward pressure that the union has placed on the company has put them in a nose dive. They will never make it through the year.
- By climbtosafety on 8/19/09
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I'm sure that there are quality management people at New Penn, who would like to do what Central did. But this is a different day and time, that was the mid 90's, if I remember correctly.
I doubt that they would be able to obtain the financing. The northeast area is crowded with carriers, and any banker would think twice before investing in the highly competitive, low return LTL business.