UPS Freight Workers in Oregon Sign Cards to Become Teamsters

In Latest Victories, About 150 Drivers, Dockworkers Will Join Teamsters

An overwhelming majority of about 150 workers at UPS Freight terminals in Oregon have signed authorization cards to become Teamsters, bringing the total number of drivers and dockworkers who have signed cards to 10,550 since January 16, Teamsters General President Jim Hoffa announced.

The workers will be joining Local 81 in Portland which covers terminals in Portland and South Portland; Local 962 in Central Point which covers the terminal in Medford, and; Local 206 in Portland which covers the terminal in Eugene.

“This has been the largest organizing victory in the freight industry in 25 years, and it keeps gaining momentum,” said Teamsters Package Division Director Ken Hall. “UPS Freight workers in 37 states have signed cards to become Teamsters.”

“We all look forward to representing these UPS Freight workers and giving them strong futures,” said Tom Strickland, Secretary-Treasurer of Local 81. “These workers really remained strong in their commitment to join the Teamsters and it has opened the door to a promising future.”

“The workers are excited to join the Teamsters Union to get the recognition they deserve for the hard work they do,” said Dan W. Ratty, Secretary-Treasurer of Local 962. “They deserve better wages and better working conditions and a secure future.”

“We’re glad the workers are now Teamsters and we’ll make sure they have a strong voice in the workplace,” said Tom Leedham, Secretary-Treasurer of Local 206.

Earlier this month, more than 89 percent of UPS Freight workers who are already Teamster members ratified a new contract, which improves wages, benefits and working conditions.

A majority of UPS Freight workers in 37 states have submitted cards: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

YRC Sees Competitive Pricing Amid Weak Econ;China Deal Nears

The head of YRC Worldwide Inc. said on Friday that pricing is "competitive but sane" as the largest U.S. trucking company by revenue attempts to reverse six months of heavy losses.

Bill Zollars, YRC's chairman and chief executive, also said it was on track to close its first acquisition of a Chinese trucking company this quarter, providing transport in China for key U.S. customers such as Wal-Mart Stores Inc. (WMT).

The trucking industry is viewed as a leading indicator of economic activity, and YRC and its rivals have faced sluggish volumes, overcapacity and soaring fuel costs.

Zollars said there were no signs of a domestic uptick, while the import and export volumes that had supported rail and truck operators also weakened.

"The one bright spot as we completed last year was the flow (of goods) from China to the U.S., and vice versa," he told Dow Jones Newswires in an interview.

"That has really (come) down as well. The global economy has been hurt by the slowdown in the U.S. economy."

Shares Soar Following Earnings Report

YRC shares soared more than 30% on Friday even though the company reported a first-quarter loss after the market close Thursday. The Overland, Kan.-based company predicted all of its operations would return to profit in the second quarter.

Shares recently were up $3.98, or 30.7%, at $16.94 on composite volume of 5.2 million shares, compared with average daily volume of 2.4 million.

YRC operates in the "less-than-truckload", or LTL, segment of the business, which groups shipments from multiple customers on single trucks. The LTL business has seen the fiercest price competition as operators have cut rates to generate cash as they struggled with the surge in diesel prices over the past four months.

The company admitted it had botched the integration of recent acquisitions last year, forcing it to unwind operational changes, close some trucking bases and eliminate 1,100 jobs.

Zollars said the revamp had been completed, while a new labor agreement would also boost the company's flexibility.

YRC has also amended credit agreements to alleviate pressures on its balance sheet and liquidity.

Opportunities In China

After focusing on a domestic turnaround, Zollars said the acquisition of Shanghai Jiayu Logistics, one of China's largest truck operators, was on track to close in the current quarter.

Jiayu is small by U.S. standards, with 3,000 trucks and annual sales of $35 million, but Zollars said it offered a two-pronged vehicle for expansion and improving customer service.

"There is just as much opportunity for moving stuff around China as there is for moving it from China to the U.S.," he said.

While Jaiyu's current customer base is mainly local Chinese companies, YRC plans to market trucking services to its large U.S. customers that have expanded in China, such as Wal-Mart and Home Depot Inc.

Zollars also predicted that Chinese manufacturers will start to boost production ahead of a wave of factory closures expected around the Beijing Olympics in August. The closures are aimed at reducing pollution levels in the Chinese capital.

"What you will see is a fairly significant inventory build-up prior to the Olympics. They will make sure there is no interruption in supplies.

YRC Worldwide posts wider-than-expected 1Q loss

YRC Worldwide Inc., one of the nation's largest trucking companies, said Thursday it swung to a loss in the first quarter much wider than Wall Street was expecting, hurt by a weak freight environment and charges stemming from a massive reorganization.

The company swung to a loss of $45.9 million, or 81 cents per share, compared with a year-ago profit of $1.3 million, or 2 cents per share.

Results included 13 cents-per-share in charges related to service-center closures at its USF Holland and USF Reddaway units and 11 cents per share for insurance claim adjustments.

Revenue slipped 4 percent to $2.23 billion, from $2.33 billion a year earlier.

Analysts were expecting a loss of 25 cents per share, with revenue of $2.26 billion, according to a poll by Thomson Financial. Analyst estimates typically exclude one-time items.

The weak U.S. economy, severe winter weather and soaring fuel prices continued to bash earnings in the first quarter, the company said.

However, the company said it expects to meet Wall Street's expectations in the second quarter as cost cuts and other operational improvements begin to take hold.

Shares fell 21 cents to $12.75 in aftermarket trading. The stock closed up 78 cents, or 6.4 percent, to $12.96 in the regular session.

UPS Freight Workers in Utah Sign Cards to Become Teamsters

In Latest Victories, About 200 Drivers, Dockworkers Will Join Teamsters

An overwhelming majority of about 200 workers at UPS Freight terminals in Utah have signed authorization cards to become Teamsters, bringing the total number of drivers and dockworkers who have signed cards to 10,400 since January 16, Teamsters General President Jim Hoffa announced. The workers will be joining Local 222 in Salt Lake City.

“With this victory, a majority of UPS Freight workers in 37 states have submitted cards to become Teamsters,” said Teamsters Package Division Director Ken Hall. “We are nearing our goal of organizing 12,600 drivers and dockworkers at UPS Freight.”

“This victory has been a long time coming,” said Tom Monthey, Secretary-Treasurer of Local 222. “A contract will give them better benefits, better wages, a better life.”

Earlier this month, more than 89 percent of UPS Freight workers who are already Teamster members ratified a new contract, which improves wages, benefits and working conditions.

UPS Freight Workers in Alabama, California, Mississippi and Oregon Sign Cards to Become Teamsters

In Latest Victories, About 100 Drivers, Dockworkers Will Join Teamsters

An overwhelming majority of about 100 workers at UPS Freight terminals in Alabama, California, Mississippi and Oregon have signed authorization cards to become Teamsters, bringing the total number of drivers and dockworkers who have signed cards to 10,200 since January 16, Teamsters General President Jim Hoffa announced.

The workers will be joining the following Locals: In California, Local 137 in Redding and Local 890 in Salinas; Local 402 in Muscle Shoals, Alabama which covers the Decatur terminal; Local 667 in Memphis which covers the Tupelo, Mississippi terminal; and Local 670 in Salem, Oregon, which covers the Hermiston terminal.

“We continue to see victories in all areas of the country, which shows that UPS Freight workers are completely united in their determination to become Teamsters,” said Teamsters Package Division Director Ken Hall. “Their determination will be rewarded with a strong contract.”

“A contract will mean the difference between night and day for the Tupelo workers,” said Henry Perry, President of Local 667, and an International Trustee. “These workers will see better benefits and working conditions and it will be a real change of life for them.”

“We were really pleased that the UPS Freight workers understood the importance of what the Teamsters can do for them,” said Diana Franken, Secretary-Treasurer of Local 670.

“The UPS Freight workers were thrilled to join the Teamsters and look forward to being a part of a strong union,” said Dave Hawley, Secretary-Treasurer of Local 137.

“It’s really exciting to see that there are a lot of UPS Freight workers all across the country who are joining the Teamsters,” said Oscar Rios, Business Agent for Local 890.

“The UPS Freight workers here want good wages and benefits and a secure future, and being Teamsters will guarantee that for them,” said Joe Gronek, Secretary-Treasurer of Local 402.

Earlier this month, more than 89 percent of UPS Freight workers who are already Teamster members ratified a new contract, which improves wages, benefits and working conditions.

Economic conditions depress UPS earnings

UPS today reported increased revenue in all segments with double-digit gains in international-package, and supply-chain and freight operations. A sharp decline in U.S. economic activity, however, led to a 9.4 percent drop in diluted earnings per share to $0.87 compared with $0.96 last year.

In 2007, first quarter adjusted earnings per share excluded an impairment charge related to aging jet aircraft and expenses for a voluntary separation program.

Including these charges, diluted earnings per share for the first quarter of 2008 increased 11.5 percent over the $0.78 per share reported in 2007.

For the three months that ended March 31, 2008, consolidated revenue increased 6.5 percent to $12.7 billion, while consolidated average daily volume remained flat at 15.1 million packages per day. Consolidated average revenue per piece increased 5.4 percent.

“U.S. economic activity deteriorated more rapidly than expected during the quarter,” said Scott Davis, UPS chairman and CEO. “While we will be extremely vigilant with respect to costs in this difficult environment, we will not lose our focus on growing the business. We will continue to invest in the infrastructure, new products and services that will enable our customers to succeed in the global marketplace.

Arkansas Best Corporation Announces a 78% Increase in First Quarter 2008 Net Income

Arkansas Best Corporation today announced a 78% increase in first quarter 2008 net income of $8.5 million, or $0.34 per diluted common share, compared to $4.8 million, or $0.19 per diluted common share, in the first quarter of 2007. Arkansas Best's 2008 first quarter revenue grew to $447.5 million from $427.8 million in the first quarter of last year.


ABF Freight System, Inc., the company's largest subsidiary, had first quarter 2008 revenue of $427.7 million, a per-day increase of 4.5% compared to first quarter 2007 revenue of $412.6 million. Operating income in this year's first quarter was $12.9 million compared to $5.8 million during the first quarter of 2007. ABF's first quarter 2008 operating ratio improved to 97.0% from 98.6% during the first quarter of 2007. "During the first three months of this year, ABF displayed solid execution and provided excellent service to our customers in the midst of what continues to be a difficult freight environment," said Robert A. Davidson, Arkansas Best President and Chief Executive Officer.

ABF's first quarter 2008 total weight per day was flat compared to the first quarter of 2007. "Though business levels remain depressed, quarterly year-over-year tonnage trends have continued to improve since the third quarter of 2007," said Mr. Davidson. "ABF continues to benefit from additional shipments moving in regional freight lanes."

"Focus on cost control, while matching labor expense with available business levels, helped ABF's performance in the first quarter," said Mr. Davidson. "I am pleased to note that the ABF team improved shipment and weight per hour productivity measures while also increasing the level of service and cargo care to our customers."

Total billed revenue per hundredweight in this year's first quarter was $26.32, an increase of 4.8% over last year's first quarter figure of $25.11. "As was the case in the fourth quarter, the overall increase in revenue yield was affected by higher fuel surcharge resulting from considerably higher fuel-related costs and by profile shifts in our freight mix," said Mr. Davidson. "Because of the weak freight environment, pricing in our industry remains very competitive. However, our account profitability continues to be supported by the high level of value-added service that we provide."

"In 2007, ABF reduced transit times, creating thousands of new next-day lanes, and that investment is beginning to bear fruit. Throughout this year, further operational changes facilitated by ABF's new labor contract should result in additional transit-time reductions in thousands of new regional freight lanes and in some of ABF's traditional longer markets," said Mr. Davidson. "ABF also expects to offer enhanced regional service throughout the western one-third of the United States by the end of the year."

"During a period of economic decline and business slowdown, shippers tend to seek out competent, stable motor carriers who offer consistent, damage-free transit and reliable customer service. ABF has been benefiting from this 'flight to quality' industry trend," said Mr. Davidson. In this year's first quarter, ABF's continuing emphasis on its Quality Process provided improvements throughout the company, including:



-- ABF's first quarter 2008 cargo claim ratio, a measure of net cash
payouts to revenue, was 0.64%, representing further improvement when
compared to the full year 2007 figure, which was the lowest in over
twenty-five years.
-- ABF's first quarter 2008 Department of Transportation ("DOT")
recordable accidents per million total road and city miles were below
those of the same period last year.
-- Workers' compensation costs in ABF's first quarter were especially
favorable. Two items contributed to this positive result. The first
item relates to ABF's annual update of claims development factors
which were lowered as a result of favorable claims experience over the
last year. This reduced ABF's year-over-year first quarter operating
ratio by approximately 60 basis points. The second item relates to
routine workers' compensation claims activity during the first quarter
which was also favorable, by a similar amount, compared to the same
period last year. Even without the impact of the development factors
adjustment, ABF's first quarter 2008 workers' compensation costs, as a
percent of revenue, were below its five-year average.

"During challenging economic times, these are a few of the characteristics that distinguish ABF as a stable and reliable choice in the LTL marketplace," said Mr. Davidson. "In addition, our financial strength offers a foundation for managing through the current environment and for considering future opportunities to serve customers that provide acceptable returns. We are evaluating opportunities inside and outside of ABF to use our considerable resources to increase shareholder value."

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2008 first quarter results. The call will be today, Wednesday, April 23, at 12:00 Noon ET (11:00 a.m. CT). Interested parties are invited to listen by calling (877) 275-1257 or (706) 634-6529 (for international callers). Following the call, a recorded playback will be available through the end of the day on Thursday, May 15, 2008. To listen to the playback, dial (800) 642-1687 or (706) 645-9291 (for international callers). The conference call ID for the playback is 41605004. The conference call and playback can also be accessed, through Thursday, May 15, on Arkansas Best's website at arkbest.com.

Philadelphia Teamster Leader Appointed To Key National Post

Local 107 President William Hamilton to Serve as International Vice President

Jim Hoffa, General President of the International Brotherhood of Teamsters, announced today that Philadelphia Local 107 President William Hamilton has been appointed to the General Executive Board as an International Vice President for the Eastern Region.

"Bill Hamilton has been a key agent in our union's growth and instrumental in our recent national contract with DHL," Hoffa said. "He has not only been an important fixture in Pennsylvania's labor movement for decades, but his work has also helped grow the Teamsters Union and can be felt by workers around the country."

Hamilton, a 42-year Teamster, first joined the union as a freight worker with Spector Motors in 1966. After serving from 1968-1970 in the Army's 101st Airborne Division during the Vietnam War, Hamilton returned to various Teamster jobs and was elected to his first union position as a steward at McLean Trucking in the early 1970s.

In 1990, Hamilton became a business agent with Local 107 and worked his way up to being elected as the local union's President in 2000 -- a position he has held ever since. In his time at the local, he organized many new Teamsters, and worked closely with freight and DHL members.

"It's an honor to be selected for the General Executive Board," said Hamilton, a second-generation Teamster. "In addition to my experience, I bring a lot of enthusiasm for working with a group of such talented people--both on the board, in the Teamsters Union and, of course, our union's hardworking rank and file."

UPS Freight Workers in Louisiana, North Carolina, Pennsylvania and South Carolina Sign Cards to Become Teamsters

In Latest Victories, About 100 Drivers, Dockworkers Will Join Teamsters

An overwhelming majority of about 100 workers at UPS Freight terminals in Louisiana, North Carolina, Pennsylvania and South Carolina have signed authorization cards to become Teamsters, bringing the total number of drivers and dockworkers who have signed cards to 10,100 since January 16, Teamsters General President Jim Hoffa announced.

The workers will be joining Local 270 in New Orleans; Local 61 in Asheville, North Carolina; Local 509 in Charleston, S.C., and; Local 30 based in Jeannette, Pennsylvania.

“We continue to rack up organizing victories nationwide, including in right-to-work states. This shows the determination of UPS Freight workers to join the Teamsters to gain a strong contract and a strong voice in the workplace,” said Teamsters Package Division Director Ken Hall.

“This victory means a lot to the workers here in New Orleans, which is still in disarray from Hurricane Katrina,” said David Negrotto, President of Local 270. “By becoming Teamsters, these workers have just guaranteed themselves a good contract.”

“We have people calling us everyday, asking how they can join the Teamsters,” said L.D. Fletcher, President of Local 509. “This victory means a lot to UPS Freight workers in South Carolina. We are seeing our membership continue to grow.”

“The card check agreement that Ken Hall was able to get for us was priceless,” said Brian Ball, Secretary-Treasurer of Local 61. “That helped us tremendously in our victory.”

“This is a huge victory for the workers who tried for years to become Teamsters when they worked for Overnite,” said Ernie Gigliotti, President of Local 30. “We are proud to have them join us.”

Earlier this month, more than 89 percent of UPS Freight workers who are already Teamster members ratified a new contract, which improves wages, benefits and working conditions.

UPS Freight courtship is long one for unions

(Kansas City, Kansas)As the Teamsters union proceeds with organizing UPS Freight Inc. workers under a new contract, the company’s 300 area hourly employees await an agency’s ruling on a rival union’s attempt to do the same.

The Association of Parcel Workers of America lost a second election in February trying to persuade workers to join its group at the UPS Freight terminal in Kansas City, Kan.

However, the group objected to the company’s actions prior to the election. The National Labor Relations Board’s Overland Park office found merit to the objection in that the election notice was posted later than it should have been, said Dan Hubbel, the agency’s regional director.

The local NLRB office recommended to the agency’s principal board in Washington that the election results be overturned again and another one be conducted. Since then, UPS Freight has filed its own objection to the local NLRB’s ruling.

The company argues that the small delay in posting the notice did not affect the second election’s results. The parcel workers group lost the February contest 109-87 after losing by a much wider margin last August.

Van Skillman, president of the parcel workers group, said there should be another election.

“The company knows they’re wrong about the notice,” he said. “If it’s posted late, it’s posted late. They’re hammering away at the workers there now, discouraging them from voting for us next time.”

UPS Freight spokesman Ira Rosenfeld said the company could not comment beyond what’s been communicated to the NLRB.

Meanwhile, the International Brotherhood of Teamsters said more than 9,900 UPS Freight drivers and dockworkers have approved a five-year contract with the company that provides wage and benefit gains.

The Teamsters have been conducting a card-signing campaign at UPS Freight terminals around the country. The company agreed to recognize the Teamsters at terminals where a majority of workers sign cards favoring representation. Once the cards are certified, the company then recognizes the union.

The Teamsters said the card-signing campaign has succeeded in more than two dozen big cities, including Atlanta, Chicago, Cleveland, Dallas, Los Angeles, Phoenix and St. Louis. The union said an additional 2,700 hourly employees at UPS Freight are eligible to sign cards and come under contract.

However, hourly employees at the local UPS Freight terminal may have to wait longer. Another election on joining the Association of Parcel Workers of America remains a possibility. But even if the NLRB in Washington upholds February’s election results that went against the parcel workers group, another labor organization will have to wait one year after the election before being allowed to organize that work force again.

YRC Worldwide: A Compelling Short Idea

Con-Way released earnings on Wednesday night which fell short of consensus estimates and reduced guidance for the full year. The Company cited what everybody in the trucking industry has been feeling: a combination of a soft freight environment coupled with weakening prices. From all indications, the second half rebound that gurus on Wall Street were expecting seems to be dead and expectations seem to be coming in, with a 2009 recovery the new mantra amongst the crowds.

All this brings me to a very interesting short idea. YRC Worldwide is the largest LTL carrier in the industry. LTL for those of you not familiar with trucking parlance stands for Less-Than-Truckload. Carriers such as YRC Worldwide consolidate multiple loads from various shippers into one tractor / container and haul it to a distribution center where it is unloaded, sorted and then delivered to the final destination.

I will attempt to identify why YRC today represents a compelling short opportunity. Full Story.......