Wednesday, January 28, 2015

YRC Seeks to Outsource Unprofitable Runs

YRC Freight is looking to increase its use of purchased transportation to increase its profitability, according to a leaked internal memo.

A Dec. 18, 2014, memo obtained by the Kansas City Business Journal, details a change-of-operations request to the International Brotherhood of Teamsters that would allow the company to increase its use of interline carriers — third-party transportation providers — in areas currently served by YRC Worldwide Inc. employees.

The Overland Park-based less-than-truckload carrier (Nasdaq: YRCW) said these changes must be made to ensure its shipment operations are profitable. No YRC employees will be laid off as a direct result of the change of operations. The company is seeking to implement the change on March 15 or later.

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