Teamsters National Freight Industry Negotiating Committee 2011 Restructuring Documents

The Teamsters National Freight Industry Negotiating Committee (TNFINC) has approved a restructuring agreement that paves the way to save the jobs of 25,000 YRCW Teamsters and keep the company in business, Teamsters General President Jim Hoffa announced Monday, February 28.

Below are links to several documents, including:

A news release that was sent out February 28.

A letter to YRCW members from General President Jim Hoffa and National Freight Division Director Tyson Johnson.

A one-page summary of the agreement in principle.

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 Shares Fall After Trucker Defers Pension Payments

Shares of YRC Worldwide Inc. dropped as much as 21% in a volatile session Thursday after the trucker reported plans to defer pension payments in what an analyst called part of an effort to avoid bankruptcy, though YRC said bankruptcy is not something it's considering.

YRC said in a release Thursday it reached an agreement with its pension fund to defer $83 million in payments. It also amended its credit facility to allow for the deferments. As of March 31, the company said it had $1.4 billion in total debt.

Stifel Nicolaus analyst David Ross said the news isn't really unexpected as the company has been doing whatever it can to raise and conserve cash.

"It's something else they're trying to stay afloat," Ross told Dow Jones Newswires, adding that whenever a company defers pension payments and does sale leasebacks, those actions are more of a "last-ditch effort."

"They're losing a ton of business, not making any money and trying to raise cash however they can, whether through deferring pension or selling real estate and leasing it back," Ross said. "The question is how long they can do this."

Chief Executive Bill Zollars told Dow Jones Newswires that bankruptcy is "not even on our radar screen" while acknowledging the pension changes announced Thursday are a short-term fix.

"The longer-term fix, we think, has to do with legislation to get the orphans off our payroll, so to speak," Zollars said, referring to the multiemployer union pension funds to which YRC contributes.

Zollars has long objected to YRC's financial obligations under the plans, saying that about half of its contributions pay for retirees who never worked for YRC but rather worked for other companies who have gone out of business.

Earlier this month, YRC said it wouldn't seek federal bailout funds, a move it had been considering to address its pension problems. Zollars said Thursday that the talk about applying for funds was mainly a way to "start the discussion" about multiemployer pension fund changes.

Zollars added that it's difficult to predict what kind of legislation could be introduced or passed but that he believes there's potential for changes.

"We think the timing is right for addressing multiemployer plans and single employer plans out there," Zollars said, adding that the company is working with a variety of people in a "fairly comprehensive approach."

In recent trading, shares were down 14.7% to $1.85 after earlier falling as low as $1.71. Shares traded higher for a time Thursday, up as much as 7.4% to $2.33. They have lost nearly 90% of their value in the past 12 months as fears about the company's substantial debt load weigh on shares. Full Story......

TEAMSTERS, YRC WORLDWIDE REACH AGREEMENT ON ECONOMIC RELIEF

Agreement Will Protect Union’s Freight Members’ Jobs, Benefits

Facing the worst economy since the 1930s, the Teamsters Union and the freight companies of YRC Worldwide Inc. (YRCW) have reached an agreement to provide the company with economic relief that will protect the jobs and retirement security of tens of thousands of Teamsters.

“This agreement will help the company get through this deepening recession and protect the jobs and health, welfare and pension benefits of our freight Teamsters,” said Tyson Johnson, Director of the Teamsters National Freight Division. “This is a very difficult time for our members, but this agreement will protect the livelihoods of our members and their families, which is our number one priority.”

The details of the agreement will be discussed on Wednesday, December 3 with leaders of local unions that represent members from the YRCW companies—Yellow Transportation, Roadway, USF Holland and New Penn. If the local leaders approve the plan, Teamster freight members will be asked to ratify the agreement next month. About 40,000 Teamster drivers, dockworkers, clerical employees and others are actively employed at the companies.

“I believe our freight members understand the terrible economic conditions that are battering the trucking industry,” said Jim Hoffa, Teamsters General President. “We are facing the worst economic environment since the Great Depression. We all need to work together to get through this period of uncertainty. This agreement will help protect tens of thousands of our members’ jobs. Failing to act now would be a grave mistake.”