YRC Looks to Close 12% of Terminals

YRC Worldwide wants to close about 12 percent of its terminals, targeting smaller facilities with low freight volume.

Yesterday, the Teamsters National Freight Industry Negotiating Committee issued a statement saying that on Nov. 10 it was advised by the struggling less-than-truckload carrier that YRC was mailing a "change of operations" to Local Unions this week.

"This multi-region 'change of operations' would affect several hundred members throughout
the United States and potentially close 31 small- and medium-sized terminals in three of the four Teamster regional areas in which they operate," the Teamsters statement said.

The Kansas City Business Journal reported the number would be "about 40" terminals. Sheila Taylor, CFO of the Overland Park, Kan.-based company, said during an analyst conference on Wednesday that the company is "taking steps to 'right size' the business." The closures affect about 12 percent of the company's 334 facilities.

The paper reported that YRC plans to consolidate facilities between mid-December and mid-January and that employees at those facilities would be given the chance to relocate.

YRC came close to filing for bankruptcy last year and is again working on restructuring to become fiscally healthy. The Teamsters last month approved a third round of concessions, but competitor ABF Freight System filed suit saying that wasn't fair to other companies covered by the National Master Freight Agreement.