YRCW teamsters decide pay cut is better than unemployment...

Discussion in 'UPS Freight' started by slaveof18wheels, Jan 12, 2009.

  1. Here's the news many freight haulers were waiting for regarding Yellow.

    Teamsters Overwhelmingly Vote 'Yes' to Modify Current Contract with YRC Worldwide

    PR Newswire
    Posted: 2009-01-08 18:00:00
    OVERLAND PARK, Kan., Jan. 8 /PRNewswire-FirstCall/ -- YRC Worldwide Inc. (Nasdaq: YRCW) announced today that its union employees represented by the International Brotherhood of Teamsters have voted overwhelmingly to modify the current labor agreements for the company's Yellow Transportation, Roadway, Holland and New Penn business units.

    The modified contract includes a 10 percent reduction in all wages paid, inclusive of scheduled increases, and the suspension of cost of living adjustments (COLA) for the remaining life of the contract. In exchange, Teamsters employees will receive a 15 percent ownership stake in YRC Worldwide, allowing them to share in future company performance. Contributions to the health, welfare and pension plans will continue as previously negotiated.

    Non-union employees will experience the same or greater percent reduction in total compensation as their union counterparts, including modifications made last year to the non-union pension, retirement and other benefit programs. Non-union employees have also received options to purchase up to a seven percent ownership stake in the company. Senior executives will reduce total compensation, but will not be eligible to participate in the stock option program.

    Bill Zollars, Chairman, President and CEO of YRC Worldwide, commented, "During a time of economic hardship, we are proud of the understanding and support of our employees. The amended contract will provide our company with significant annual cost reductions that will also have long-term benefits as the economy recovers."

    The company expects to achieve $220 to $250 million in annual savings from its labor contract modification during the remaining term of the contract in addition to the $75 to $85 million in savings in 2009 from the non-union compensation reductions that were effective January 1, 2009. The company also expects to improve 2009 operating income by a run rate of $200 million from the integration of the Yellow Transportation and Roadway networks that is expected to be complete in early spring 2009.

    "This agreement is another critical step in our wide-ranging plan to strengthen our balance sheet, while enhancing service for our customers through our national integration of Yellow and Roadway," said Zollars. "With this wage reduction and our other planned cost savings, we are confident that we can sustain our liquidity position and meet our debt obligations, despite the economic downturn, upon completion of negotiations on an amendment to our credit facilities."
  2. 705red

    705red Browncafe Steward

    In my opinion they did what they had to to keep their jobs. However i would have voted no personally, and for this reason alone. Yrc has been diverting the work to its logistics side of the company which is far cheaper labor and non union.

    This was one of the big sticking points here during the negotiations. Does it matter if you make 22 an hour or 20 when your sitting at home on layoff because your work has been diverted?

    I would have voted yes and giving back if they would have agreed to stronger subcontracting language, something jimmy did not think about asking for because hes never done the job!

    The vote here in 705 was close, only 30 more yes votes over the no votes out of roughly 500 returned.
    Wonder how much of a raise jimmy will get this year?
  3. City Driver

    City Driver New Member

    glad i got out of roadway years ago...i heard it was more like $4 an hour but 10% makes it about $2.30 an hour