Trade News > Trucking Logistics > YRC, Teamsters to Talk Cost Cuts

YRC, Teamsters to Talk Cost Cuts

William B. Cassidy | Jun 25, 2009 7:44PM GMT

The Journal of Commerce Online - News Story

LTL trucker, union to reopen labor contract for second time as company seeks ‘operating capital’

Six months after winning a 10 percent wage cut from its unionized workers, YRC Worldwide is back at the bargaining table. The troubled company — the largest LTL operator in the country — is asking the Teamsters to help it reduce costs again.

The $8.9 billion carrier, which is trying to stave off bankruptcy, will open talks with the Teamsters June 29 to modify the terms of its current labor agreement.

“We are grateful to the Teamsters for their willingness to consider further adjustments to our contracts to help reduce our cost structure and enable us to be competitive with others in our industry,” said William D. Zollars, YRC Worldwide chairman, president and CEO.

“Entering into discussions with the Teamsters is another important step in our overall plan to strengthen our financial position during this difficult economic climate.”

The Teamsters don’t want to bear the burden alone — the union said it wants the company’s lenders to pitch in.

“We are entering these negotiations with the expectation that YRCW’s banks and other stakeholders will also cooperate in helping solve the company’s immediate cash needs,” said Tyson Johnson, Teamsters National Freight Division Director.

YRC Worldwide is one of the largest employers of Teamster workers in the freight industry, with about 50,000 employees under contract.

Contact William B. Cassidy at wcassidy@joc.com

ABF was a "ME TO" to the contract as well as New Penn motor express. This ment that yrcw negotiated ts own contract and it stands alone when changes are negotiated. ABF would have to prove a hard ship to make their own changes, and as the last ranger points out, they are not in dire straights!

- By irishzig on 6/29/09

YRC doesn't have a chance in making it. Just prolonging the inevitable. (IMHO) (disclaimer).
All this is going to do is make it harder for the last and very well run company ABF to profit in a unfair Teamster implemented environment.
ABF didn't make overzealous stupid financial decisions.

ABF doesn't need to ask their employees for concessions (and should not)
But, between the 10% give back and the deference of millions to the pension fund on a scheduled basis, this puts ABF at a large financial disadvantage. Along with YRC's elevated discount programs that they have to contend with.

So the Teamsters are punishing ABF by trying to help a carrier that is trying to sell the idea that it is the "shared pension plan" that is causing most of their problems.
What are the teamsters thinking? Kill another one while ...well, .. you get it.

If I'm ABF..when this is implemented..I'm calling foul..breach of contract (since they are supposed to be part of master freight with the SAME conditions)

Why should a well run company making money ask their employees to make concessions just because a competitor screwed up..THINK about it..ABF employees should get screwed because YRC dictates it? Sure, ABF as a company would love this..(a free cost saving plan)
But it is unnecessary and unwarranted. They were doing fine..yeah, they are loosing some now...but so is everybody. They have the money to weather this economic storm.
Thank-you teamsters? National Freight Division

- By THELASTRANGER on 6/26/09