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.
Evan Lockridge・Former Business Contributing Editor
November 5, 2013
Photo: Evan Lockridge
2 min to read
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
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.”
Ad Loading...
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.
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.
Ad Loading...
The company is set to release its third-quarter earnings statement later this week.
New Fleet Advantage research shows generative AI adoption has exploded among private fleets. But poor data integration and weak ROI tracking are preventing fleets from unlocking AI’s full operational and financial value.
When the unexpected happens, how you react to, and deal with operational blind spots is critical. Here’s how to keep you recovery on track, when nothing is normal.
As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.
CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.
Heavy Duty Trucking is searching for forward-looking leaders at trucking fleets as nominations for HDT’s Truck Fleet Innovators 2026. Deadline is May 15.
Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.
