A U.S.-based shipping company is shutting down its operations in Edmonton Oct. 31 after its unionized employees refused to take cuts in their wages and benefits, says the company's Canadian president.
"It's a tough economy and people have to realize this," said YRC Reimer Canadian president Clayton Gording.
He said about 55 to 60 drivers and warehouse workers will be affected.
Gording said the unionized workers who belong to a Teamsters local voted just days ago against taking a cut in wages and benefits.
The vast majority of Reimer employees in the U.S. took rollbacks earlier this year averaging 25%, Gording said.
Proposed wage rollbacks in Canada were not that large.
He would not give breakdowns on the value of rollbacks the company was seeking in Edmonton. He said it has operated here since the 1950s. Gording said Reimer will continue to service Edmonton through other means.
A spokesman for the Teamsters local union could not be reached for comment.