International Brotherhood of Teamsters General President Jim Hoffa met with Yellow CEO Bill Zollars and Roadway CEO Jim Staley this week to address the union's concerns about the proposed merger of the two freight companies.
"This proposed merger raises many questions," Hoffa said after the meeting. "The job security of our members is at stake. We intend to thoroughly review the proposal to ensure that the financial integrity of both companies remains strong and the job security of their workers is protected."
Hoffa questioned the CEOs on the long-term impact of the merger and how the economic outlook will affect any current projections.
Company officials indicated the following:
-- They hope to conclude the proposed merger by the end of the year
-- The companies expect minimal impact on the workers and both will continue to compete against each other
-- There are no anticipated job losses
-- There will be no impact on Roadway subsidiaries New Penn and Reimer.
Hoffa said the proposed merger will potentially impact more than 35,000 Teamster members. Compounding union concerns is the fact that, combined, Yellow and Roadway have closed more than 600 terminals in the last 10 years. Further, he said, there appears to be no apparent economic value without reducing operations or a significant rebound in the economy.
The union is currently analyzing the proposal and the cross-over business that both companies share, Hoffa said, adding the union is awaiting answers to a number of questions that could not be answered at the meeting.
The Teamster Freight Division will be providing regular updates on the proposed Yellow/Roadway merger at www.teamster.org.
"This proposed merger raises many questions," Hoffa said after the meeting. "The job security of our members is at stake. We intend to thoroughly review the proposal to ensure that the financial integrity of both companies remains strong and the job security of their workers is protected."
Hoffa questioned the CEOs on the long-term impact of the merger and how the economic outlook will affect any current projections.
Company officials indicated the following:
-- They hope to conclude the proposed merger by the end of the year
-- The companies expect minimal impact on the workers and both will continue to compete against each other
-- There are no anticipated job losses
-- There will be no impact on Roadway subsidiaries New Penn and Reimer.
Hoffa said the proposed merger will potentially impact more than 35,000 Teamster members. Compounding union concerns is the fact that, combined, Yellow and Roadway have closed more than 600 terminals in the last 10 years. Further, he said, there appears to be no apparent economic value without reducing operations or a significant rebound in the economy.
The union is currently analyzing the proposal and the cross-over business that both companies share, Hoffa said, adding the union is awaiting answers to a number of questions that could not be answered at the meeting.
The Teamster Freight Division will be providing regular updates on the proposed Yellow/Roadway merger at www.teamster.org.
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