YRC Worldwide restructuring officer Lamar gets $80,000 a month

The leader of YRC Worldwide Inc.’s efforts to rebuild its finances is receiving $80,000 a month and will get a $500,000 payday if he brings the company in for a successful landing, as defined by the company’s board.

Chief Restructuring Officer John Lamar, whom the board assigned to the position in November and who has been lead director since May, also will continue to receive his regular compensation for sitting on the board. The assignment is good for a year.

Jim Kissinger, executive vice president of human resources, detailed the terms in a letter to Lamar, dated Nov. 8, which was included in the company’s annual report. Full Story......

YRC Worldwide Transitions CFO Responsibilities

YRC Worldwide Inc. today announced that Sheila Taylor, Executive Vice President and Chief Financial Officer, has decided to leave the company effective March 31 to pursue opportunities outside of the less-than-truckload industry. Ms. Taylor has been CFO since October 2009 and prior to that was Vice President of Investor Relations and Treasurer.

"Sheila has been instrumental in the company's financial restructuring over the last few years, including the significant turnaround in operating results and the generation and preservation of liquidity," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "I personally appreciate what we have accomplished under her leadership and wish her well as she takes her career in a different direction."

William Trubeck, a member of the Board of Directors since 1994, will take over as interim Executive VP & CFO while the company completes its restructuring efforts.

Trubeck has over 30 years experience in executive leadership positions for Fortune 500 companies including specific experience as the CFO at H&R Block, Waste Management, and International Multi-Foods. In addition, he has led a variety of restructuring efforts during his career.

"We are extremely fortunate to have a person of Bill's executive experience and capability, as well as a long-term member of our Board, step into this interim role as CFO. We fully expect him to play an important role in completing the final steps in the restructuring efforts of YRCW," stated John Lamar, Chief Restructuring Officer.

Trubeck has served in various corporate director positions including WellCare Health Plans, Dynegy, Ceridian Corporation and The Federal Home Loan Bank of Des Moines and is currently vice chairman of the board of trustees of Monmouth College, Monmouth, Ill. Trubeck received his Bachelor of Arts in Business Administration from Monmouth College and a Master of Business Administration from the University of Connecticut.

Teamster Freight Members at New Penn Approve Job Security Plan

Drivers, Dockworkers Ratify Plan Aimed at Preserving Their Jobs, Benefits

Teamster members at New Penn have overwhelmingly approved a Job Security Plan that provides economic relief to its parent company, YRC Worldwide, Inc., as it tries to recover from a recession that is pummeling the freight business.

In the revote, New Penn members--as well as members covered by all mechanics and office agreements--approved the plan 912-334. In the first vote, New Penn members rejected the plan while a majority of other YRCW employees ratified the plan. About 1,500 New Penn workers were eligible to vote.

"The New Penn local union leaders did a great job explaining the negative
consequences if this revote was not successful," said Tyson Johnson, Director
of the Teamsters National Freight Division. "The New Penn members realized
that hundreds of jobs were at stake in this vote."

The Job Security Plan provides YRCW with over $1.2 billion of cost savings over the remaining 43-month term of the agreement and greatly enhances YRCW's financial position. While the wage reduction and pension terminations are effective immediately, they will not remain in effect unless:

1) YRCW and its bank group amend their loan agreements in order to provide the company with sufficient liquidity and flexibility to complete its restructuring and take advantage of the upturn in freight demand anticipated in 2010; and

2) affiliated Teamster Pension Funds approve the "deferral/termination" arrangement.

The plan calls for a reduction in gross wages of 15 percent from the full
National Master Freight Agreement rates. This includes the 10 percent wage
reduction previously ratified by the membership in January 2009.

Additionally, the plan will allow the company to terminate pension fund contributions effective from July 1, 2009 through December 31, 2010, but employees will not lose accrued benefits or credits previously earned during this period.

Bringing a smile to a child's face

YRC, a subsidiary of YRC Worldwide and Christina’s Smile Children’s Dental Clinic offered free dental care to needy children Aug. 5 at the YRC, Inc. terminal in Akron. Dr. Garza provided free dental care to children throughout the day.

In Akron, the dental clinic was conducted in conjunction with the WGC-Bridgestone Invitational. The children were selected and organized by St. Bernard’s Church.

Christina’s Smile Children’s Dental Clinic is a program that delivers dental treatment to disadvantaged children at no charge to them, their parents, or the identifying agencies.

The clinic travels in two 53-foot trailers. Each trailer houses three fully equipped dental suites. Local dentists volunteer to provide dental care to children selected by charitable organizations in each community the clinic visits.

In 2009, 21 Clinics will be conducted to treat more than 2,400 children and provide more than $1,500,000 worth of dentistry to children who might not otherwise receive the care they so desperately need.

YRC, Inc. has supported Christina’s Smile for the past 20 years by moving and maintaining the 53-foot trailers that house the mobile dental clinics free of charge.

NEW PENN FREIGHT MEMBERS TO REVOTE JOB SECURITY PLAN

Teamsters say YRC Worldwide may close regional carrier unless workers approve wage, benefit cuts

Less-than-truckload carrier New Penn Motor Express may be merged into long-haul operator YRC unless union employees reverse course and accept wage and benefit cuts they rejected earlier this month, the Teamsters union said.

YRC Worldwide plans to merge New Penn into YRC unless the “job security plan” approved by YRC and Holland Teamsters is adopted at New Penn, Teamster executive Tyson Johnson said in an Aug. 17 letter to New Penn Teamsters.

Teamsters at New Penn will have the opportunity to vote again on the Job Security Plan, and ballots will be mailed on or about Wednesday, August 19, 2009 and will be due back September 9, 2009.

YRC Worldwide, which sought the labor concessions as part of a larger effort to restructure its operations and debt-ridden finances, did not respond immediately to calls for comment.

Teamsters at long-haul LTL carrier YRC and regional carrier Holland approved wage and benefits cuts Aug. 7 by a 58.5 percent margin.

Teamsters at regional carrier New Penn, however, who belong to a different bargaining unit, rejected the proposal.

At an Aug. 11 emergency meeting with the union's negotiating group, "the company indicated that it plans to call for a change of operations in the near future to merge New Penn into YRCW," Johnson wrote in the letter.

"Because the merger could cost hundreds of Teamster jobs, the majority of New Penn local unions have also requested a revote by New Penn members," wrote Johnson, who is co-chairman of the Teamsters National Freight Industry Negotiating Committee.

New Penn, which became part of what is now YRC when Yellow Corp. acquired Roadway in 2003, has long been considered the best of YRC's regional subsidiaries. It employs more than 2,000 workers and has 24 terminals, primarily in the Northeast.

Teamsters Ratification of Contract Changes Moves YRC Worldwide Comprehensive Plan Forward

Immediate cost savings from modified agreement estimated at $45 million monthly, increases to $50 million monthly in 2010

Company signs additional asset sale contracts with NATMI for $81 million

YRC Worldwide Inc. announced today a major step forward in the company's comprehensive plan, with a majority of its employees represented by the International Brotherhood of Teamsters voting '"yes" to ratify a modified labor agreement.

"With the support of our employee-owners and other stakeholders, we continue making progress with our comprehensive recovery plan - realizing efficiencies from the YRC integration, restoring financial strength and positioning YRC Worldwide for future success," said Bill Zollars, Chairman, President and CEO of YRC Worldwide. "The contract changes enable us to reduce our cost structure, preserve capital and be more competitive in the marketplace."

The modified agreement includes a 5 percent incremental wage reduction and an 18-month cessation of union pension fund contributions, which will not require repayment. Related savings from the pension and wage reduction are approximately $45 million per month, and begin immediately. Savings increase to an estimated $50 million per month in 2010.

"Our union employees approached this situation in a very professional manner," said Mike Smid, President of YRC Inc. and Chief Operations Officer of YRC Worldwide. "This vote sends a clear message to our customers and our competitors. We are moving forward together, and we're moving forward with confidence, delivering uninterrupted and unparalleled service in our superior networks."

As with prior ratification elections, a small number of the bargaining units representing less than 10 percent of our Teamster employees did not yet ratify the labor agreement modifications. The company and the Teamsters expect to address employee concerns and have these smaller bargaining units reconsider the modifications in the near future.

Additional Asset Sales Contract Finalized

The company also announced progress on improving its liquidity position by executing contracts with NorthAmerican Terminals Management, Inc. ('NATMI') to sell and simultaneously lease back certain facilities, and to sell additional excess properties. The aggregate sales price is approximately $81 million and the property sales are intended to close during the third and fourth quarters of 2009. Sale and financing leaseback transactions are now expected to generate around $375 million of cash proceeds and excess property sales should generate over $100 million in 2009.

YRC Worldwide will continue to announce updates on its comprehensive plan as developments occur.

TEAMSTER FREIGHT MEMBERS RATIFY YRCW JOB SECURITY PLAN

Hoffa Says Time For Banks To Step Up

Teamster members who work at the freight companies of YRC Worldwide Inc. Yellow, Roadway and Holland—have approved a Job Security Plan that provides economic relief for YRCW as it works to get through the worst economic crisis since the Great Depression. The modifications were ratified by a 58.5 percent to 41.5 percent margin, with 64 percent of members casting ballots. Ballots were mailed to union members on July 17 and counted today.

“Once again Teamster members at YRCW have shown great courage by making extraordinary sacrifices to help this company survive,” said Jim Hoffa, Teamsters General President.

The Job Security Plan provides YRCW with over $1.2 billion of cost savings over the remaining 44 month term of the agreement and greatly enhances YRCW’s financial position. While the wage reduction and pension terminations are effective immediately, they will not remain in effect unless:

1) YRCW and its bank group amend their loan agreements in order to provide the company with sufficient liquidity and flexibility to complete its restructuring and take advantage of the upturn in freight demand anticipated in 2010; and

2) affiliated Teamster Pension Funds approve the “deferral/termination” arrangement.

“Now YRCW, banks and other stakeholders have to step up and do their part to ensure the company’s long-term survival,” Hoffa said. “Do the banks want the fate of 35,000 YRCW workers, hundreds of thousands of retirees, and hundreds of thousands of other workers to be their responsibility if they do not significantly rework YRCW’s loan facilities?”

The plan calls for a reduction in gross wages of 15 percent from the full National Master Freight Agreement rates effective Aug. 1, 2009. This includes the 10 percent wage reduction previously ratified by the membership in January 2009.

Additionally, the plan will allow the company to terminate pension fund contributions effective from July 1, 2009 through December 31, 2010. During this time, employees will not earn additional pension accruals or credits. At the same time, they will not lose accrued benefits or credits previously earned during this period.

The plan also provides for the issuance of options for YRCW stock to Teamster members that would lead to employee ownership of an additional 20 percent of the company’s outstanding stock over and above the 15 percent that was negotiated at the end of last year.

“As the economy is just now showing signs of improvement our primary goal is to make sure YRCW’s other stakeholders, primarily the bank lending group led by JP Morgan, SunTrust, The Royal Bank of Scotland, Wells Fargo (Wachovia), Bank of America, Bank of Tokyo--Mitsubishi and US Bank, provide YRCW with the necessary liquidity to withstand this recession and ensure YRCW’s long term financial stability,” said Tyson Johnson, Director of the Teamsters National Freight Division.

“I commend our YRCW Freight Teamsters for doing everything that has been asked – over $2 billion in wage and pension relief since January. We’ve done our part to preserve members’ jobs and their benefits, now the other stakeholders have to step up to the plate.”

The vast majority of YRCW Teamsters, who made up 90 percent of the total vote, work under the National Agreement. A handful of separate “white paper” agreements, representing 10 percent of the total number of voters, rejected the plan. As with past contract ratification rejections, those issues will be dealt with on a local by local basis.

YRCW Ballot Count

The Independent Election Supervisor has announced that due to an overwhelming number of ballots cast, the YRCW ballot count will not be completed until Friday, August 7, 2009.

The ballots are currently being sorted according to Local Union number and company. The balloting process will resume Friday morning with results expected to be announced Friday afternoon.

Results of the balloting process will be posted on www.teamster.org

Ballots Mailed To YRCW Teamsters

Ballots were mailed July 17 to all YRCW Teamsters regarding the proposed Memorandum of Understanding (MOU). The Teamsters National Freight Industry Negotiating Committee (TNFINC) believes the MOU is the best effort to protect tens of thousands of Teamster members’ jobs, wages, and health and pension benefits into the future.

Ballots must be received by the Lanham, Maryland post office by August 6.

Audio Of YRCW Teamsters Conference Call Is Available

On July 16th, thousands of YRCW Teamsters participated in a conference call about the proposed Memorandum of Understanding (MOU) with General President Jim Hoffa, General Secretary-Treasurer C. Thomas Keegel and Freight Division Director Tyson Johnson. The conference call was meant for members to hear directly from IBT leaders about the MOU and to ask questions.

Click here to listen to the conference call.

YRCW AND IBT REACH TENTATIVE AGREEMENT - FROM BILL ZOLLARS

The Teamsters will soon be voting on the tentative agreement to modify the terms of the current labor agreement. Bill Zollars has more in this new YRC Worldwide Insight video.

FREIGHT LEADERS SUPPORT ECONOMIC RELIEF PLAN TO PROTECT JOBS

Immediately following the Two-Man Freight meeting held July 14, a Freight Bulletin summarizing the meeting and the documents presented was sent to the printer and will then be mailed to all affected members. It should begin arriving in members’ homes this weekend. The Bulletin contains a question and answer section members will find helpful.

Click here to read the Bulletin.

RELATED LINKS
Memorandum of Understanding
How Did We Get Here?
Summary of Economic Relief Plan
Q and A: Pension and Health and Welfare Benefit Plans
Q and A: Stock Option Plan

The Teamsters Are Not to Blame for YRC Wordwide's Current Desperation

Implications

YRC Worldwide has too much debt, has lost nearly $2 billion in the last nine quarters, is downsizing its network and has outdated work rules. Of all those shortcomings, probably only the latter can be blamed exclusively on the Teamsters' union. Yet an article in Today'sFinancialNews.com tries to blame all of YRC's shortcomings on its union, and very little to management's buying binge earlier in this decade that saddled the company with an unrealistic debt load.

Analysis

YRC Worldwide, the nation's largest trucking company by revenue, is facing a financial showdown with its consortium of bank lenders. It has a liquidity crisis that may cause it to file for bankruptcy or liquidation.

If it is lucky, YRC's consortium of lenders will continue to throw the company more financial rope. If it is lucky, its customers will continue to enjoy the deep discounts it is offering for its services. If it is lucky, the economic downturn will finally turn around and the company may survive.

But none of these circumstances would have happened without the cooperation and, yes, enlightened labor relations approach showed by its 50,000 Teamsters members and its president, James P. Hoffa, son of the legendary Teamsters leader.

The Teamsters have shown remarkable flexibility in helping YRC stay afloat. They have approved one wage giveback of 10 percent and probably are close to approving another 5 percent shave. These wage cutbacks are saving the company approximately $250 million a year.

Furthermore, and maybe more importantly to freight Teamsters whose average age is about 60, the Teamsters have OK'd a pension contribution freeze to allow YRC to remain financially viable. In the first quarter alone, that pension payment deferral was worth about $83 million.

Now that YRC's shares have sunk to about the buck-a-share level, a reporter, Andrew Snyder of Today'sFinancialNews.com, has written that all this is because of stubbornness by the union.

Mr. Snyder writes: "In YRC's case, the Teamsters are maintaining their infamous negotiating might and bargaining themselves right out of a job."

That is exactly, precisely, and stunningly, 100 percent wrong, Mr. Snyder.

In fact, Teamster flexibility and willingness to work with management are the only reasons this company is still afloat. Time after time when YRC officials have gone to the Teamsters asking for concessions, they have obtained them.

Now, I'm not going to go as far as saying the Teamsters have been blameless in other unionized trucking companies' demise. After all, more than 500,000 Teamsters jobs in the freight sector have disappeared since the industry was deregulated in 1980.

But those closings have nothing to do with YRC's current plight. YRC is in the trouble it is in because of its overwhelmingly high debt load.

David Ross of Stifel Nicolaus has estimated YRC has $1.427 billion of total debt, including $728 million to its group of bank lenders. Those banks have chosen to keep YRC alive.

That $1.427 billion of debt is perhaps three times as much as an $8 billion-a-year company such as YRC can afford in lean times such as this. It suffers under that debt load because of a pair of ill-timed acquisitions -- Roadway Express in 2003 for $1.1 billion and USF Corp. in 2005 for $1.2 billion -- highly leveraged acquisitions that have been costly to YRC in the long run.

The Teamsters didn't have a darn thing to do with deciding to make those acquisitions, Mr. Snyder. The decision to plunge ahead with those debt-laden acquisitions lies squarely with YRC's management, specifically its Chairman and CEO Bill Zollars.

Even Zollars has admitted publicly that the Teamsters have been helpful in giving the company flexibility to survive. Mr. Snyder is correct in labeling YRC as a "high-risk, speculative play" for investors. But it is high risk because of management's decisions, not labor's.

Press Releases Are Good. Facts Are Better. YRC Soldiers On.

Implications

YRC Worldwide, the nation's largest trucking company by revenue, issued a press release saying it has reached a tentative agreement with the Teamsters union over more concessions made by its 55,000 rank-and-file Teamsters. Exact details are not known, and were not disclosed. They are likely to include an additional 5 percent wage cut in addition to the 10 percent wage giveback the union agreed to back in April.

Analysis

Fighting financial wars on several fronts, beleaguered U.S. trucking giant YRC Worldwide says it has reached a tentative agreement with the Teamsters union regarding more concessions by rank-and-file workers aimed at keeping the $7 billion LTL company afloat.

Exact details were not released. It is believed the Teamsters agreed to an additional 5 percent wage giveback to go along with the 10 percent cut agreed to in April. That earlier cut was estimated to save the company as much as $250 million annual. So an additional 5 percent shave might save the company $100 to $125 million.

"The press release says nothing new," wrote David G. Ross, a respected analyst who tracks YRC Worldwide for Stifel Nicolaus, Baltimore.

Ross has been on top of this company. He estimates that YRC National (the old Roadway and Yellow networks) has suffered year-over-year freight volume tonnage losses of up to 40 percent. Its regional carriers (the only Holland and New Penn companies) are off more than 20 percent. Full Story......

Pact shields union jobs, reduces costs

New Penn Motor Express’ parent company has reached a tentative deal with the Teamsters that will reduce the firm’s expenses and protect union jobs.

YRC Worldwide Inc. and the International Brotherhood of Teamsters agreed to modify terms of their current labor agreement, according to statements from the company and union issued yesterday.

YRC’s stock price, which opened the day at a 52-week low, shot up on the news and closed at $1.49, an increase of $0.60, or 67 percent. The stock has traded between $0.89 and $22.52 during the past year.

Details of the agreement are expected to be released next week after further discussions with the union, news releases from YRC and the IBT said. The modified contract will be voted on by YRC employees who are represented by the Teamsters.

New Penn, a trucking firm based in South Lebanon Township, employs more than 2,000 people and operates a fleet of more than 750 tractors and 1,700 trailers.

YRC Worldwide, with headquarters in Overland Park, Kan., and 49,000 employees, is the holding company for a group of brands, including New Penn, Holland, YRC and YRC Logistics.

The Teamsters say the deal calls for “equal sacrifice” from workers and the company, according to The Associated Press. In earlier negotiations, the Teamsters expressed concern with issues they felt would affect them and not YRC. One of those issues was that YRC was asking to stop its pension contributions for 14months, which would save $500 million, but the workers would not have received anything in return.

“This is a tough situation for the company and our members,” Teamsters Freight Division Director Tyson Johnson said in a statement. “We are confident this tentative agreement balances the need to provide job security while maintaining good quality jobs.”

“We appreciate the ongoing willingness of the Teamsters leadership to work with the company to identify ways to improve the financial position of YRC Worldwide during this severe economic recession,” YRC President and Chief Operations Officer Mike Smid said in a release. “Our employees are the most dedicated and professional in the industry, and their continued loyalty to serving our customers remains unrivaled.”

In January, the 35,000 union members agreed to a 10 percent pay cut in exchange for a 15 percent stake in the company.

YRC has sold a number of its properties, including its corporate headquarters, to preserve liquidity and has made deals with creditors to stay within terms of its debt obligations.

YRC Worldwide Statement on Tentative Agreement with Teamsters

YRC Worldwide Inc. announced today that it has reached a tentative agreement with the International Brotherhood of Teamsters leadership to modify the terms of the current labor agreement for its employees covered by the National Master Freight Agreement. The proposed changes are designed to reduce the company's cost structure and preserve operating capital.

"We appreciate the ongoing willingness of the Teamsters leadership to work with the company to identify ways to improve the financial position of YRC Worldwide during this severe economic recession," said Mike Smid, President of YRC Inc. and Chief Operations Officer of YRC Worldwide. "Our employees are the most dedicated and professional in the industry, and their continued loyalty to serving our customers remains unrivaled."

Details surrounding the tentative agreement are expected to be available next week following further discussions with labor leadership. The modified agreement will be voted on by YRC Worldwide employees who are represented by the IBT.

TEAMSTERS AND YRCW REACH TENTATIVE AGREEMENT

The Teamsters National Freight Industry Negotiating Subcommittee announced today that a tentative agreement has been reached with YRCW that addresses the Company’s immediate cash concerns and long-term competitiveness while protecting Teamster members’ jobs and benefits once the company returns to profitability.

Details of the Tentative Agreement will be made available to the membership after being explained to Local Union leaders early next week.

“In the midst of the worst economic recession in our lifetime our Union negotiators have crafted a Tentative Agreement with YRCW that requires shared sacrifice while preserving good jobs and benefits for 35,000 YRCW workers and their families and tens of thousands Teamster retirees,” said James P. Hoffa, Teamsters General President.

“This is a tough situation for the company and our members,” said Tyson Johnson, Teamsters Freight Division Director and co-chairman of the TNFINC. “Our members should know our Freight leaders, Pension Fund trustees, Teamster staff and independent experts have worked tirelessly to evaluate the situation and develop a solution that protects our members and allows the company to survive the worst freight recession in several generations. We are confident this Tentative Agreement balances the need to provide job security while maintaining good quality jobs.”

“This Tentative Agreement should also send a message to the industry players who are slashing prices in an attempt to force YRCW out of business that YRCW will have the resources to be here for the long haul,” Johnson said.

YRC Worldwide Announces Partnership With Army Reserve

Cooperative Agreement Builds Careers, Economy

YRC Worldwide Inc. today announced that it has finalized an agreement with the U.S. Army Reserve to work collaboratively to enhance job opportunities for soldiers and veterans.

Under the agreement formally known as the Army Reserve Employer Partnership Initiative (EPI), YRC Worldwide joins hundreds of employers throughout the U.S. pledging to work with the military to identify and hire qualified job applicants. As an EPI member, YRC Worldwide will provide postings of all applicable jobs to all 20 U.S. Army Reserve locations.

Jim Kissinger, Executive Vice President of Human Resources for YRC Worldwide, met with Army Reserve leaders in Kansas City, Mo., to sign the formal EPI agreement, and said it is an extension of outreach efforts already under way to hire veterans.

"We've hired a significant number of veterans, and we have found that military experience is a good fit for many of the opportunities we have," Kissinger said. "We've also found that the Army provides excellent training in the field of logistics and transportation."

Maj. Gen. Mari K. Ender, deputy chief, U.S. Army Reserve, said she was pleased to have the opportunity to establish enduring strategic partnerships with YRC Worldwide and other employers. "I look forward to collaborating with our newest valued partners to achieve mutual goals to attract, develop and retain a quality workforce," she said.

Since April 2008, more than 300 public and private employers have joined the EPI, including Fortune 500 companies, hospitals, industry associations, state agencies and local police departments.

YRCW announces next steps in Yellow Transportation, Roadway network intregration

More than four months after announcing plans to integrate its two largest subsidiaries—Yellow Transportation and Roadway—less-than-truckload transportation services providers YRC Worldwide Inc. announced the new brand name for the combined Yellow Transportation and Roadway network is YRC.

Last September, YRCW announced its intention to hasten the integration strategies of Yellow Transportation and Roadway, due to what company Chairman, President, and CEO Bill Zollars described as a positive customer response from meshing its sales teams, coupled with the economic downturn creating the capacity in the company’s networks that is needed to effectively integrate its operations, while improving service reliability and speed. And he added at the time that by offering a comprehensive service portfolio though one network would be a better tool to effectively serve customers.

YRCW officials said the YRC is “ahead of schedule to successfully integrate its national networks by early spring.” They added that since October approximately 80 shared service centers have been opened to manage the combined network and serve as a single interface fore Roadway and Yellow Transportation customers.

And when the network integration is complete, there will be around 450 YRC service centers, representing roughly 100 more service centers than the individual Roadway and Yellow networks. Company officials noted that in major metropolitan areas, the nearest YRC facility will be 20 percent closer to customers, allowing for quicker pick-ups and deliveries, increased flexibility, and reduced emissions, and they said that as part of the integration process YRC has added more than 21,000 direct new service points.

While the Yellow Transportation/Roadway integration has been in motion since September, the original plan was to keep the Yellow Transportation and Roadway names to maintain their own brands and presence in the LTL sector. And by operating one national network, YRCW said last year that it expects to increase its network density, with the result being lower fixed-costs and service improvements. The integration is expected to last through 2009 and result in more than $200 million in annual operating savings.

In a September interview with Logistics Management,YRC North American Transportation President and CEO Mike Smid said these savings will come from various sources. One being consolidating the number of facilities it operates out of from 650 to roughly 450, as it combines capacity in existing facilities as part of YRCW’s “one network, one operation” approach with this integration. Another area where savings will come from, said Smid, is local pickup and delivery handling.