About 80 members of Teamsters Local 397 will be among union members nationwide who will vote on a 10 percent wage reduction as part of economic relief plan for YRC Worldwide Inc., a trucking company.Local 397 President Ronald Gibbs said union leadership is recommending approval of the plan because of the financial problems faced by YRC Worldwide during the current economic downtown.
The company has lost about 80 percent of its stock market value over the past year. As a result, banks have mandated virtually all of its assets be pledged to cover current debt. That means the company can't borrow more and could face a liquidity crisis in 2009, the union said.
About 40,000 Teamster members are employed at the affected YRC Worldwide units -- Yellow Transportation, Roadway, Holland and New Penn. About 80 truck drivers from Erie and Crawford counties are represented by Local 397.
If approved, the wage reductions will remain in effect until the current Teamsters contract expires in 2013.
In return for the wage concessions, Gibbs said Teamsters members will receive an equity stake in the company. Nonunion employees would receive the same or greater percent reduction in total compensation.
The estimated savings is $220 million to $250 million a year.
Ballots are now being mailed to union members and are to be counted on Dec. 30. The reductions are expected to go into effect Jan. 1.
