YRC Freight Restructures, Board Member Resigns from YRC Worldwide
March 05, 2014
New YRC Freight president Darren Hawkins is shaking up things with the less-than-truckload carrier by reorganizing its management.
He is expanding its number of divisions from four to seven, with each division having a vice president, responsible for operations and sales. Each vice president will report directly to Hawkins.
In a memo to employees Hawkins said the changes “will allow those closest to the revenue generation and operational performance of YRC Freight to be in control of profitable growth and service cycle execution for the company” along with allowing more “leadership accountability.”
He noted while YRC Freight has “historically achieved strong operational performance at various times and achieved strong sales performance at others,” it has “rarely been able to have both sides of the business model functioning seamlessly, at a high level and at the same time.” Hawkins said he believes the changes he is making will allow the company to achieve both by having operations and sales working together.
A number of promotions and new assignments were also announced by Hawkins, who stepped into his role only a few days ago. He replaced Jeff Rodgers who was let go by parent company YRC Worldwide early last fall. Hawkins reports directly to YRC Worldwide CEO James Welch, who was also temporary president of YRC Freight following Rodgers’ departure.
YRC Freight has been going through tough financial times ever since combining the operations of Yellow Freight and Roadway, losing more than a billion dollars and coming close to having to file for bankruptcy more than once, along with having to get concessions from its Teamsters Union employees.
Meantime, parent YRC Worldwide announced Harry J. Wilson has resigned as a member of its board of directors.
Wilson served on the board since 2011 and along with his firm, MAEVA Group, led the recently completed series of transactions that significantly reduced corporate debt, brought in fresh equity and lowered interest payments, according to the company.
YRCW says it will meet with the Teamsters to seek their nomination to fill the open board seat. The union has the right to nominate