Thursday, May 26, 2005

ABF Freight System, Inc. Premium Service Change of Operations

Affecting Locals 29, 110, 118, 170, 171, 182, 191, 251, 264, 294, 312, 317, 340, 355, 375, 384, 391, 397, 401, 429, 443, 445, 449 (Information Only), 470, 493, 529, 557, 560, 592, 597, 633, 653, 671, 687, 693, 707, 771, 773, 776, 822, and 992
ABF Freight System, Inc. Multi-Region Premium Service Change of Operations -MR-PS-CO-03-05/2005
The following is the decision from the ABF Freight System Premium Service Change of Operations MR-PS-CO-03-05/2005, which was heard at a special hearing May 17, 2005, at the Myrtle Beach Marriott at the Grande Dunes, Myrtle Beach, SC.
DECISION: The Company’s proposed Premium Service Employee Workday/Workweek Agreement (PSE) Change of Operations is approved as modified and clarified by the parties on the record with the following provisions:
1. The request of the New York State Local unions to have functioning air conditioners in all PSE equipment is approved.
2. Based on the request of the various Local Unions for the Company to provide PSE sign-in and sign-out sheets at touch terminals is approved.
3. The request of Local 776 to have all PSE hostling performed by Local 776 employees is specifically denied. However, this provision is not intended to allow a PSE employee to perform any hostling of core business equipment, and there shall be no reduction of present hostler bids.
4. There shall be no interlining of PSE business with a nonunion carrier.
5. The issues relative to layoffs that were raised by the New England Local Unions must be resolved prior to implementation, and a copy of the resolution is to be provided to the Co-Chairmen.
6. The document entitled “ABF Freight System, Inc. Premium Service Employee Workday/Workweek Agreement” executed by the Company and the Union on behalf of TNFINC and the Eastern Region Local Unions is incorporated in this decision by reference.
7. Approval of this PSE Change of Operations is not intended to violate any provision of the NMFA and the Letter of Understanding relative to Article 18 and the applicable supplemental agreements.
8. Implementation shall not be sooner than May 29, 2005.

Shippers learn to live in interesting times

SHIPPERS MAY NOT BE ENJOYING THE TURBULENT TIMES THEY'VE been thrust into, but they're learning to deal with them. After nearly 25 years of calling the shots in what basically amounted to a buyer's market for trucking service, they're having to adjust to a new reality. In recent months, industry consolidation and a severe driver shortage have conspired to limit, if not shrink, truck capacity nationwide. As a result, shippers report that it's not only getting tougher to find a truck, but if they do find one, it's costing them a lot more to hire it. More here......

Yellow boss says to expect more LTL consolidation

Yellow Roadway Corp. chairman and chief executive William Zollars in an interview with Marketwatch this week that he predicted further LTL consolidation in North America. Zollars said that four or five big companies would eventually handle most regional, second-day and other LTL business. See full story here..........

Wednesday, May 25, 2005

YRC Regional Corp

Trucking company Yellow Roadway Corp. will open a subsidiary in the Akron area that will add about 30 jobs here.
The subsidiary, YRC Regional Corp., will begin operating out of leased space June 1 at 3517 Embassy Parkway, on the Fairlawn and Bath Township line. The newly established subsidiary will include companies New Penn Motor Express, USF Holland, USF Reddaway, USF Dugan, USF Bestway and USF Glen Moore. Yellow Roadway closed on its acquisition of USF Corp. on Tuesday.
Some personnel will relocate from Chicago, some will transfer from the Roadway Express Akron facility, and others will be new hires, the Kansas-based trucking company said.

Tuesday, May 24, 2005

Yellow Roadway closes USF acquisition, increases guidance

KANSAS CITY, Mo. - Yellow Roadway Corp. said Tuesday it was increasing its quarterly and annual earnings estimates as it closed its acquisition of regional trucking company USF Corp. Full story here......

Monday, May 23, 2005

USF shareholders approve Yellow Roadway deal

Trucking company USF Corp. said Monday that a majority of its shareholders approved selling the company to Yellow Roadway Corp. for $1.37 billion in cash and stock.
The deal is expected to be closed on Tuesday, USF said in a news release. A telephone conference call featuring Yellow chairman and CEO Bill Zollars is scheduled for 4:30 p.m. EDT Tuesday.
USF, based in Chicago, said that 99.5 percent of votes cast favored the acquisition and 61.5 percent of shareholders voted. Following the closing, USF shareholders will receive for each of their shares $29.25 in cash and the right to receive 0.31584 shares of Yellow stock.
The deal originally involved a 50/50 split in stock and cash, but Yellow executives three weeks ago changing it to a 65/35 cash-stock split. The change brought the level of new Yellow stock below the 20 percent threshold that would have required a vote of the company's shareholders.
Zollars has said the combination will strengthen the Overland Park, Kan.-based company's position in the less-than-truckload business, which transports freight from several customers in the same vehicle, as well as give Yellow a presence in the next-day delivery business.
He said he expects Yellow can wring $40 million in savings from USF in the first year and $150 million long-term. However, trucking analysts said they remain skeptical that Yellow can achieve those numbers during a period of smaller loads and higher fuel costs.
Yellow shares were up 32 cents, or 0.6 percent, to $53.36 in midday trading on the Nasdaq stock exchange. The company's stock has traded in a 52-week range of $32.99 to $64.47 per share. USF shares were up 13 cents, or 0.28 percent, to $46.12 in midday trading on the Nasdaq. The company's stock has traded in a 52-week range of $27.51 to $50.91.