Roadway to close most of local facility

Tannersville terminal to lose estimated 143 jobsRoadway Express will close most of its Tannersville terminal by March 1, transferring or eliminating an estimated 143 jobs as part of a nationwide consolidation of the trucking company's operations.

The move will affect 55 drivers, 42 transfer dock workers, 25 mechanics plus other employees. Most of those jobs will be moved to other facilities.

Just a few jobs related to pickup and delivery will remain in Tannersville; the exact number is unclear.

"Tannersville will be a much smaller operation than it is today," said Mike Smid, president of YRC North America. YRC owns Roadway Express and Yellow Freight and is combining the companies. According to Smid, integration of the Yellow and Roadway will create the largest trucking operation in North America.

At the Yellow location in Allentown, 19 jobs will be gained, while Roadway in Allentown will lose 37 jobs.

Roadway's Tannersville location has experienced several staff reductions in the last few years. In recent weeks some Tannersville workers have been furloughed because of the season and economics.

Of the Tannersville workers affected "most will have opportunities to follow work to locations that are gaining work," Smid said. Those locations have not yet been determined. First, a change-of-operations hearing must be held with the Teamsters union, which represents the workers. That will happen in January, but the exact date and location has not been determined.

The "change of operations" is a document for the union which states the intentions of a company.

"It's a massive change. Probably one of the biggest I've ever seen," said a business agent who declines to give his name at Local 229 Teamsters in Scranton, the home union for Tannersville Roadway employees. Yellow and Roadway job transfers and work-force reductions are planned across North America.

"YRC is being forced to make changes in an attempt to cut costs. Unfortunately that will have some impact on our members. We will work tirelessly to ensure their contract rights are enforced and their seniority is protected," said Leigh Strope, a spokeswoman for the Teamsters.

Tannersville is one of 450 truck terminals in the United States owned by YRC North America.

Major Trucking Company Downshifting

Teamsters moving to Mokena

After what officers of the union called a 20-year search for a new home, Teamsters Local 710 will move its offices from Chicago to a Mokena industrial park.

The new building, expected to be finished by October, will house about 60 employees of the local as well as its health, welfare and pension funds.

Chartered in 1903, the local now has its offices at 4217 S. Halsted St. and originally represented drivers working in Chicago's stockyards.

"The freight industry grew as the meat industry shrank," Pat Flynn, 710's secretary-treasurer, said at a groundbreaking Thursday for the new 30,000-square-foot building.

The nation's fourth-largest Teamsters local with 14,000 members, 710 represents drivers who work for companies such as ABF, Holland, Roadway, UPS and Yellow.

The local long had studied a move to the suburbs, said Jim Dawes, the local's president.

"This is a task that has literally taken 20 years," he said.

A ZIP code search of where its members live helped identify the southwest suburbs as the "perfect location" for an office that would be more accessible to 710's members, said Flynn, a Tinley Park resident.

"Our entire membership is out in this area today," he said. "This truly is the center of our universe here."

Apart from the union employees who'll work at the office, it will be frequently visited by members looking for information regarding insurance and pension issues, Flynn said. Local business, such as restaurants, could see increased business as a result, he said.

"Our members make decent money, and we spend it pretty well, too," Flynn said.
Having the local move its offices to the village will "bring a greater level of credibility and awareness" to Mokena, Mayor Joe Werner said. Another major union, the Pipefitters, also has offices and a training center in Mokena.

The union's office will be at 9000 W. 187th St. in Corporate Corridors, a business park being developed by Tinley Park-based TCB Development. It's the third such light industrial project undertaken in Mokena by TCB, which has built about 10 million square feet of commercial space in the Chicago area, primarily in the Southland.

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 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.”

Government keeps 11-hour limit on truckers hours

Government agency maintains 11-hour limit on truckers hours, instead of proposed change to 10

The Federal Motor Carrier Safety Administration on Tuesday maintained a regulation that allows truck drivers to stay on the road for 11 hours in a row, rather than a limit of 10.

In a conference call, administrator John Hill said that there was no evidence that safety of travelers is jeopardized by having truck drivers on the road for 11 hours.

Safety advocates say the industry is putting the public at risk by allowing truckers to drive too many hours.

The trucking industry's main trade group, the American Trucking Association, has been a proponent of maintaining the 11-hour limit, arguing that further limiting trucker's hours would have been costly and would have required the industry to retrain drivers and operating personnel, reprint logs, reengineer routes and make other changes.

A spokeswoman for the group said the ATA was pleased with the decision and noted that current safety rules, first established in 2004, have already resulted in safer highways. The ATA represents companies including UPS Inc. and YRC Worldwide Inc.

YRC Integration Ahead of Schedule

The integration of YRCW's two largest less-than-truckload subsidiaries is proceeding ahead of schedule, the company said Nov. 18. With support from customers and the collaboration of the Teamsters, more than 60 facilities nationwide are either consolidated or in the process of consolidation.

As the economy fizzles and demand slackens in the current quarter, Bill Zollars, chairman, president and CEO of YRC Worldwide, is calling on the transportation and logistics industry to focus on the future by pointing out the improved services and savings that will be achieved when the integration is completed.

"In this time of unprecedented economic challenges, our industry needs to focus on continually improving our efficiency and effectiveness," Zollars said.

The national integration for Yellow Transportation and Roadway is part of the company's program to improve operations and solidify its financial position. Strategic global growth, enhanced service offerings in the regional network and expanded communications are also part of the plan.

"Integrating our network enables us to provide unparalleled benefits to customers," said Mike Smid, president and CEO of the YRC Worldwide North American transportation division. "The integrated network builds shipment densities, allowing us to expand service offerings, improve reliability and serve more direct points."