Monday, June 01, 2009

YRC Pension Fund Demands Payment

Multi-employer pension plan refers trucker’s accounts to attorneys

The Western Conference of Teamsters Pension Trust, one of approximately 20 separate multi-employer pension plans to which YRC contributes, has referred its 10 YRC accounts to its attorneys for collection.

Sources at the trust confirmed a letter dated May 20 was sent to YRC’s Roadway Express subsidiary based in Akron, Ohio, informing the carrier that pension contributions had not been received for the months of March and April.

YRC has until June 6 to respond to the trust’s demand for payment or be found liable for liquidated damages in an amount equal to 20 percent of contributions, plus interest and collection costs, according to the letter. A source at the trust said YRC was “one of our bigger contributors.”

The Teamsters union said in a May 27 notice to members that while the pension plans are not controlled by the union, most trustees representing employees support YRC’s request to defer pension payments to help the company weather its financial problems. The union acknowledged, however, that some of the pension funds have “taken independent steps that may affect the future status of members’ pensions,” and that members have the right to request more information from the funds.

“At the present time, we are asking all Teamster members at YRC to remain patient and continue to serve YRC’s customers so that the company can survive this economic crisis,” the union said.

YRC officials were not immediately available to comment.

No comments: