YRC Worldwide, Teamsters will resume talks Wednesday

YRC Worldwide Inc. is set to resume face-to-face negotiations with its union on Wednesday as the two seek a way to help YRC maintain sufficient cash to continue operating.

A spokesman for the International Brotherhood of Teamsters confirmed Monday when the in-person talks would continue. Discussions, which began a week ago, are being held at the Teamsters’ Washington headquarters and by conference call.

Neither the company nor the union has disclosed the content of the negotiations.

Overland Park-based trucking company YRC which has roughly 49,000 employees — more than half of them union members — has been weighed down by debt and a lengthy freight recession, and lost $257.4 million in the first quarter. It has integrated subsidiaries, shut down facilities, laid off workers and sold property to try to cut costs and maintain liquidity.

Early this year, Teamsters members agreed to a 10 percent wage cut and suspension of cost-of-living adjustments through 2013 in exchange for a 15 percent stake in the company. YRC also has been negotiating to defer union pension fund payments using company real estate as collateral and on June 18 secured an agreement with the largest pension fund to defer $83 million in payments.

The union has said it also is reaching out to stakeholders — such as pension funds and YRC’s lenders — to address the cash issue.

YRC Worldwide, Teamsters trade plans to bolster trucking company

YRC Worldwide Inc. and its union have swapped plans for helping the trucking company generate sufficient short-term cash.

The parties began talks Monday at the International Brotherhood of Teamsters’ headquarters in Washington. A Teamsters negotiating committee is reviewing YRC’s proposal, and negotiations were expected to resume Tuesday, according to an update on the Teamsters’ Web site. The union has said it is reaching out to stakeholders — such as pension funds and lenders — to address the cash issue.

The Overland Park-based trucking company which has about 49,000 employees, has been hit by a drawn-out freight recession, losing $257.4 million in the first quarter. It has integrated subsidiaries, shut down facilities, laid off workers and sold property to try to cut costs and maintain liquidity.

Early this year, Teamsters member agreed to a 10 percent wage cut and suspension of cost-of-living adjustments through 2013 in exchange for a 15 percent stake in the company. YRC also has been negotiating to defer union pension fund payments using company real estate as collateral — a move its lenders allowed — and on June 18 secured an agreement with the largest pension fund to defer $83 million in payments.

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.