Monday, June 01, 2009

Second Pension Fund Seeks Payment From YRC

Trucker says it is in discussions with fund trustees

The New England Teamsters and Trucking Industry Pension Fund is seeking two months worth of pension fund contributions from YRC Worldwide and is threatening to take legal action if not paid.

A source at the Burlington, Mass.-based pension fund confirmed a letter dated May 29 was sent to YRC notifying the company of its past due contributions and that failure to make payments may affect future pension credits and eligibility for pension benefits.

The letter to YRC was similar to one dated May 20 from the Western Conference of Teamsters Pension Trust, which also sought past due payments from the carrier.

In April, YRC received approval from its banking group to provide real estate as collateral in lieu of making payments to its pension funds. Depending on employment levels, the company makes multiemployer pension contributions of $34 million to $45 million per month on behalf of its union work force, according to Securities and Exchange Commission filings.

The source at the New England Pension Fund said the notification, which included a threat to take legal action, was standard procedure when payments are overdue and does not necessarily mean the fund isn’t working with YRC to temporarily defer payments.

YRC said in a statement that it is “currently in discussions with the trustees for the pension funds and the Teamsters regarding the proposed arrangement.”

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