YRC Worldwide Inc. announced today significant progress on its previously announced comprehensive plan to realize efficiencies from the YRC integration, restore financial strength, and position its operating companies for future success. The company's progress report includes updates on two key areas of its plan.Teamsters to vote on contract modifications
YRC Worldwide announced today that its employees represented by the International Brotherhood of Teamsters ("IBT") will soon vote on modifying the company's current labor agreement. In addition to a five percent incremental wage reduction, the proposed modified agreement includes an 18 month cessation of union pension fund contributions, which will not require repayment at a later date.
"This is another step in our ongoing strategic plan to restore the financial strength of our company," said Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Modifications to the labor agreement will help us reduce our cost structure, preserve operating capital and increase our competitiveness." In addition, YRC Worldwide is continuing discussions to address the structural inequities of multi-employer pension plans to determine a long-term solution. Zollars said, "We continue to have ongoing, productive dialogues with all our stakeholders, including the bondholders and pension funds."
The modifications would create an approximate $45 million per month savings, which begins immediately upon ratification, and grows to an approximate $50 million per month savings in 2010. In exchange, the Teamsters employees would receive options for 20 percent of the outstanding shares of YRC Worldwide stock, pending shareholder approval. This will allow them to further share in future company performance through stock price appreciation. YRC Worldwide also will appoint an additional member to its board of directors who is mutually agreed upon by the company and the negotiating committee. Additional details regarding the terms of the proposed contract modifications can be found in the current report filed today with the Securities and Exchange Commission.
Last year, non-union employees of YRC Worldwide began contributing to cost structure reductions at the same or a greater percentage of their total compensation as union employees. This includes modifications to the non-union pension, retirement and other benefit programs in addition to salary and wage reductions. "During this severe economic recession, I am gratified by the continued partnership, professionalism and commitment of our union and non-union employees to make personal sacrifices to achieve long-term success for our company and our customers," said Zollars.
Lender group support and discussions continue
Today the company announced that it finalized an amendment to its revolving credit facility with its lenders to extend the revolver reserve through July 31, 2009. During this extension, YRC Worldwide and its lenders will work collaboratively to reach agreement on options for longer-term modifications to its existing credit facilities. The revolver reserve was initially established in February 2009 to serve as a temporary reserve against the revolver capacity as the company sold real estate collateralized to the lenders.
Second quarter earnings scheduled
YRC Worldwide plans to release second quarter 2009 earnings after market close on Thursday, July 30, 2009
7 comments:
vote no.
VOTE YES
"Voting for dummies"
If you are 3 years or less for retirement.... VOTE NO
If you are 3 years or more for retirement.... VOTE YES
If you have a second job or your wife has a goverment job...VOTE NO
If YRC is your only job or your wife doesn't have a job... VOTE YES
If you can live with a state unemployment check of $ 450.00 per week ....VOTE NO
If you can't live with a state unemployment check of $ 450.00 per week ..... VOTE YES
If you are inside of " UNION BUBBLE "... VOTE NO
If you see " REALITY "... VOTE YES
If you are selfish,sarcastic ,greedy,
unconcious,material boy, predigeous,humilianting arrogant,insensible person. ...VOTE NO
If you are Humble .... VOTE YES
The 15% wage reduction should be revisted every year instead of the duration of the contract. If this is an eye for an eye proposel, where does it say the non union employees are binded with the 4 year consession?
An email from Bill Zollars to all YRC employees dated 7/14 states that the non-union employees will have merit increases and performance-based incentive plans re-instated in 2010. Why should we take another pay cut while they continue to make millions
I would not vote for this if I was a teamster. I worked in the office and I saw all the waste that was going on. Sometimes you just have to stand up for what is right! YRC thinks everyone will vote Yes on this because they know there are no jobs out there for anyone.
People who worked in the office took a 10% pay cut and were promised that it would go back to only 5%. Recently they were told not to expect to get that 5% back. And with the way it is going I am sure it will be a 15% across the board pay cut for everyone.
They try to make a positive spin on everything so that we will not let the customer know what is going on. Then they just screw you over again!
You cannot tell me this company is going broke either! They have plenty of assets! If they wanted to save money they should have stopped wasting money years ago on all the baseball sponsoring...golf and race cars sponsors.
Even though I worked in the office I saw the value of the drivers out in the field. They are out there everyday with the customers. How does YRC ever expect to keep the business if you do not keep the drivers happy?
I say vote NO...you have taken enough concessions and shame on your union President for asking you to vote yes!
I worked at Yellow as a supervisor for many years and here is what I have to say. At least 40% percent of the drivers/dock workers took pride in their work. The other 60% came from other failed freight companies i.e. Silver Eagle, CF to name a few. These people brought the same mentality to Yellow that cost them their jobs at the last few DC's. The sense of entitlement and lack of productivity will be the ultimate demise of YRC. Vote yes! ask Oakharbor Freightline workers what happened when they took a stand in this recession. They lost....evrything. Now they are working without a contract-
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