70 laid off in merger of truckers

The merger of two area trucking terminals operated by Roadway and Yellow Transportation has resulted in about 70 layoffs.

YRC Worldwide, which owns the Roadway and Yellow business units, announced last December that it would close its Roadway Express terminal in West Seneca this month and integrate its functions with Yellow’s Town of Tonawanda terminal.

While layoffs were expected, the number was not clear until the merger took effect. The layoffs were in a variety of job categories, said Tracy Memoli, a YRC Worldwide spokeswoman. A more specific breakdown of the cuts was not available.

Ken Nelligan, president of Teamsters Local 449, said some road drivers displaced by the cuts have transferred to jobs at terminals elsewhere, including Rochester. But finding jobs for the rest is difficult, since many other trucking companies have also laid off drivers due to the poor economy, he said.

The Tonawanda terminal now has a work force of 550, Memoli said. That includes road drivers, dock workers, pickup and delivery drivers, mechanics, switch drivers and utility employees.

Yellow Corp. bought Roadway in 2003. The impact of the integration of the Yellow Transportation and Roadway networks has been felt around the country this month. YRC Worldwide said it closed certain facilities in places where there were overlaps between the two existing networks. The combined entity has 450 locations, down from 600 before the merger.

YRC Worldwide by the fourth quarter expects to improve its operating income by a run rate of $200 million as a result of integrating the Roadway and Yellow networks. YRC Worldwide reported a $974 million loss in 2008.

Earlier this year, the company announced that Teamsters members at Yellow, Roadway and its two other business units approved contract modifications. The changes included a 10 percent reduction in wages paid and the suspension of cost of living adjustments for the rest of the contract.

In exchange, Teamsters-represented employees received a 15 percent ownership stake in YRC Worldwide. Nonunion employees also had their wages reduced and received options to purchase up to a 7 percent ownership stake in the company.