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YRC Worldwide, Teamsters Set to Meet

November 5, 2013

By Evan Lockridge

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A few years ago, YRC Worldwide was able to stay afloat with the help of union workers agreeing to a series of wage and benefit cuts. YRC's back in the same boat, but this time around, lenders are insisting on changes.

Photo: Evan Lockridge
Photo: Evan Lockridge

Ahead of a meeting with representatives of the Teamsters Union on Tuesday in Dallas, CEO James Welch said in a letter, “Our lenders have made it clear the combined company needs to be performing better than it is today, and that we need a labor agreement with our Teamster employees that extends beyond our current expiration and any new debt maturities, and increases our competitiveness, before any refinancing can be completed.”

Welch blamed the situation on YRC’s previous management team, which he says left the company with more than $1 billion in debt. YRC owes lenders $400 million in 2014 and $685 million in 2015. It has also been several years since YRC Worldwide has reported an annual profit.

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While Welch did not lay out specific concessions he hopes to receive from the union, YRC’s contract with the Teamsters isn’t up until March of 2015. The current labor pact was negotiated in 2010, when the Teamsters agreed to a 15% wage cut. In 2009 and 2011, YRC had to rework its finances to avoid bankruptcy.

YRC has about 32,000 workers who are represented by the Teamsters. YRC is the parent of several carriers, including YRC Freight.

The company is set to release its third-quarter earnings statement later this week. 

Comments

  1. 1. holland driver [ November 05, 2013 @ 07:26PM ]

    wheres the sacerfies on management and u mr welch i give up 15 percnt 1 week vacation plus 100 miles to drive to work because u sold our terminal its never enough u keep taking plus u are giving top brass bonuses i would love to have a bonus check for looseing money like u guys do u dont get it do u every thang keeps going up but our pay checks we need something back /
    .

  2. 2. daryl [ November 06, 2013 @ 03:04AM ]

    i am liveing in a room house 100 miles from my family in worcester mass. i am paying 550 a month do see my family and i am 4 months from retirement you yrc hae hurt so many men and woman and familys , your descions have crippeled families across america, i reads how big your bonuses are every year while us men in the trenches are struggling with c.o.l. cost goin up, i am ashamed to be any part of yrc , i just hope us union teamsters receive in full compensation for all we have sacraficed. and i get to see my family and grandchildren this weekend and not forced to work.

  3. 3. Jeff YRC [ November 06, 2013 @ 04:51AM ]

    YRC Freight also gave up their pension, why is that not mentioned in this article? The pension was over $5 an hour, more than the pay cut they were given.

  4. 4. Kevin J. Reidy [ November 06, 2013 @ 05:43AM ]

    Amazing. Yet once again, incompetent Management expects Labor to take the fall for their poor decisions.

    What a great deal for them, completely mis-manage a company, blame everyone that isn't senior management for their own mistakes, collect millions in pay and bonuses, then leave or get thrown out while driving a dumptruck full of money as a going-away present..

  5. 5. Dock Father [ November 06, 2013 @ 08:52AM ]

    They slowly keep bleeding us Teamsters out. What has management been doing with the 350 plus million in savings from the 15% cut as well as the pension and the one week's vacation? Really now, who is sailing this ship? If YRC can't compete with those savings, how will the boat really float. -Dock Father 889 Hayward CA. Local #70

  6. 6. BJ [ November 06, 2013 @ 01:44PM ]

    Yep here we go again. It's about time for the Upper management to give back 15% of their wages or live on a truck drivers wage and see how they like it. We have given alot of money back to them already. We are tired of this year after year. Get you act together.

  7. 7. BJ [ November 06, 2013 @ 01:44PM ]

    Yep here we go again. It's about time for the Upper management to give back 15% of their wages or live on a truck drivers wage and see how they like it. We have given alot of money back to them already. We are tired of this year after year. Get you act together.

  8. 8. Eric [ November 06, 2013 @ 02:41PM ]

    In May of 2013 YRC tried to acquire ABF. ok with what money? Hoffa stated that before YRC begins looking for acquisitions targets they should first restore our members' wages and pension contributions. Question how will Hoffa and union leaders stand on this new subject of YRC looking for more concessions? Is the Union going to allow us to have a vote on our future or is this right going to be stripped from us again? The way I feel, YRC has had many chances to get it right and they never will. Even Hoffa said "We have seen this kind of arrogance before and thought they had finally learned the lessons of past management catastrophes" but I guess not

  9. 9. tonja [ November 07, 2013 @ 12:31PM ]

    YRC president needs to give up his pay. No more of my husband pay will go back to you

  10. 10. Thinkaboutit [ November 09, 2013 @ 09:03AM ]

    Why not just go find that job that pays the wage you expect you are worth instead of whinning about your agreement with YRC? Seems simple enough to me. You are worth it, go make it happen.

  11. 11. Roadway Bob [ November 12, 2013 @ 10:40AM ]

    race to the bottom meets race to the top, eventually no one will want to drive a truck, so why not just have all drivers walk away now and let the fat cats drive

 

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