If YRC Worldwide Fails, You Can't Blame the Teamsters.

Analysis of: Teamsters Freight Members Ratify YRCW Job Security Plan

Implications: By a 77-to-23 percent margin, Teamsters rank and file at the YRC Worldwide member companies have approved a 10 percent wage giveback that is expected to save the company between $220 million and $250 million annually. It actually will save the company more than that going forward because it also suspends all cost-of-living raises-- which were supposed to be around 3.5 percent annually--through the end of the contract in 2013. Pension contributions are unchanged, which is of prime importance to the Teamsters.

Analysis: Well, YRC Worldwide's 55,000 or so Teamsters have certainly done their part to help save the venerable 83-year-old trucking concern, the nation's largest.

Now, it's management's turn.

Labor and management leaders have both strong-armed this wage concession through to the point where it passed by a 77-23 percent margin with an impressive 75 percent of affected Teamsters voting. That's a huge number, considering only about 33 percent of eligible Teamsters actually vote in union presidential elections.

Teamsters union President Jim Hoffa called it a desperation move. "We are facing the worst economy in our lifetime," Hoffa said.

Not to be outdone, YRC Worldwide CEO Bill Zollars says in his press release: "During a time of economic hardship, we are proud of the understanding and support of our employees. The amended contract will provide our company with significant annual cost reductions that will also have long-term benefits as the economy recovers."

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Zollars: Labor Pact Levels Field

YRC Worldwide Chairman, President and CEO William D. Zollars said the money saved by the wage concessions sought from the Teamsters union will level the playing field between his company and its nonunion competition.

"This pretty much wipes out the difference between union and non-union in our industry, in terms of our cost-base," Zollars said in an interview this morning with CNBC.

YRC is seeking a 10 percent wage cut from its Yellow Transportation, Roadway, Holland and New Penn subsidiaries and a suspension of cost of living adjustments. In exchange, Teamsters employees would receive a 15 percent ownership stake through YRC stock. YRC estimates the cost savings from the modifications to the National Master Freight Agreement at $220 million to $250 million annually. A vote on ratification of the agreement by union members is scheduled for later this month.

Zollars said freight levels declined in "double digits" compared with a year ago.

"It's a pretty ugly situation out there. We're just putting ourselves in a position to be able to make it through no matter how bad it gets." (Click here for video)

Teamsters - YRC negotiations could affect hundreds of local workers

One of the largest shipping companies in the country is at the negotiation table with the Teamsters, and hundreds of Michiana workers could be affected by what comes out of the talks.

About 350 Michiana workers are employed by YRC Worldwide, which you likely know as the three shipping companies they own: Yellow Transportation, USF Holland, and Roadway.

YRC's CEO Bob Zollars says they're exploring their options with the teamsters, to see how they can help the company through this tough economic time.

“We approached the Teamsters in an effort to explore all available options under the National Master Freight Agreement to ensure competitiveness and preserve the benefits and jobs of our union employees,” Zollars said Tuesday, according to the Kansas City Star.

In a memo sent to local Teamster members yesterday, the organization says, "It is questionable if the company can generate enough money to prevent a prolonged downturn," as the struggling economy may affect their ability to borrow money to pay down debts.

The company is trying to re-negotiate the contract they signed 9 months ago, that gave workers a raise.

The teamsters say they're not negotiating the parts of their contract that include benefits; they're really only talking about the possibility of decreasing their pay.

Local teamsters say some sort of agreement is in everyone's best interest.

“We hope we can keep jobs we just want to come to work every day and take a paycheck so we can feed our families just like you and everybody else,” said Dennis Switzer, a Yellow employee who has worked at the terminal in South Bend for 13 years.

“We're in the middle of a recession. We're in the middle of a huge economic downturn and (YRC), like everyone else, is having some struggles. But they’re working through those struggles and they're going to be fine. They’re going to survive and be competitive,” said Bob Warnock III, President of the Local Teamsters #364.

Meanwhile, investment experts don't expect YRC to go out of business over the next few months.

But they do expect its stock to remain volatile, and it's dropped by about 80% over the last year.

These contract negotiations have been going on since Monday.

YRC is the second largest employer of Teamster employees in the country, and there are about 40,000 union employees nationwide at YRC.

YRC could not be reached for comment Wednesday.