Trucking company YRC Worldwide Inc. and officials from the Teamsters union have ended their first week of talks, so far unable to reach a deal on more employee concessions that would help the trucker stave off a bankruptcy protection filing that could be looming.
The nearly 40,000 unionized employees of YRC, which runs trucks under names including Yellow and Roadway - already agreed to take a 10 percent cut in pay earlier this year to hold up the company's battered finances. In exchange for the pay cut, workers got a 15 percent stake in the company.
But the company is asking for more cuts as shipping declines in the weak economy and YRC is forced to make tough decisions to maintain its cash and hold off creditors.
The trucking industry has been hit hard by a sharp falloff in demand as consumers bought less and manufacturing lines slowed. YRC was hit particularly hard, losing customers when it merged its Yellow and Roadway unit operations. The company complained publicly about its hefty pension obligations and sold some of its real estate to pay off debts. Full Story.......