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YRC Freight, Teamsters Agree To Network Changes

April 24, 2013

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The Teamsters union has approved the network optimization plan YRC Freight submitted in March. The plan will close 29 terminals, forcing the company to change how freight moves through its network of more than 260 other terminals.

The move is expected to result in a net loss of 230 jobs, and some 1,200 employees will be affected, with many being offered employment at other facilities.

The less-than-truckload carrier says the network optimization is a key component of YRC Freight's strategy to continuously improve customer service by reducing the handling of shipments and excess time in transit. The transportation team and network engineers at YRC Freight will implement the enhancements over the next several weeks.

"Our network team identified opportunities for us to further align customer service and operating efficiencies," said Jeff Rogers, president of YRC Freight.  "New network densities, load factors and direct routing of shipments will make this network optimization the foundation of our continued performance improvement initiatives in 2013."

This is the latest change by parent YRC Worldwide as part of a massive restructuring of the carrier that has includes pay cuts and benefit reductions for employees in a effort to return to profitability following huge losses the past several years, though recent financial performance has been better.

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