The latest plan by nationwide less-than-truckload carrier YRC Freight to improve its financial and operational picture has been slowed.
On Monday the company announced it would soon be in talks with the Teamsters Union about closing three distribution centers and 29 terminals. It’s estimated the change would eliminate more than 200 net jobs.
YRC hoped to begin meetings as soon as next week, ahead of a May implementation. However, the union reportedly wants more time to look over the plan.
The union's dissident group, Teamsters for a Democratic Union, says no meetings are planned for this month or next month, calling the plan “even bigger and badder than expected.”
On its website, TDU said, “The International union today informed local unions via a faxed memo that there are substantive and procedure issues with the change to be reviewed, and directed locals not to schedule meetings with the company regarding the change.”
However, in a statement issued Tuesday, parent company YRC Worldwide said a formal hearing on the matter is set to take place next month. Jeff Rogers, president of YRC Freight, called the plan a move to sustained profitability for the carrier. Since merging the operations of Yellow Freight and Roadway several years ago, YRC has been plagued by huge financial losses, though conditions have improved lately, with YRC Worldwide reporting positive annual operating income for the first time in six years.
A meeting between the company and the union is required as part of the labor contract between the two sides, including to get feedback from the Teamsters. However, the union doesn’t have much control, because the company's contract allows YRC to make changes in operations without a vote by union members.