YRC jumps early contract hurdle, faces restructuring challenges

With the Teamsters’ rank-and-file ramification likely on a new five-year labor deal, YRC Worldwide hopes it has stemmed freight diversion to non-union competition as the nation’s largest group of LTL carriers hopes to rebound from one of its worst years in its 84-year history.

With its stock having lost 53 percent of its value in 2007, YRC is in the forefront of a trucking recession that has hurt virtually every carrier. But because Teamster-covered YRC operates in the relatively flat $33.4 billion LTL sector—with its Roadway and Yellow units facing high fixed costs while operating in the sluggish long-haul subsector—it has been hammered harder than most.

The bright side for YRC is it has obtained labor peace for at least the next five years. Although the new National Master Freight Agreement had not been ratified by press time, there was every likelihood it would be signed a full six weeks head of its March 31 expiration of the old contract. Full Story....