YRC carrier votes again after rejecting concessions

About 1,500 drivers and dockworkers at New Penn, a YRC Worldwide Inc. regional carrier, rejected the concessions accepted by most YRC Teamsters members earlier this month.

A revote began last week. This time, declining to accept the revised contract that reduces wages 5 percent more could cost many New Penn employees their jobs, the union said.

New Penn is a regional less-than-truckload company that operates mainly in the Northeast. Its employees are covered by a contract separate from the national agreement most freight industry Teamsters work under. YRC’s biggest units, YRC Inc. and USF Holland, approved the cuts to the national contract, including allowing YRC to suspend monthly pension fund payments until January 2011.

In a letter to New Penn union workers last week, Teamsters national freight director Tyson Johnson said YRC requested an emergency meeting with the union’s national bargaining team after the vote count.

“During the Aug. 11 meeting, the company indicated that it plans to call for a change of operations in the near future to merge New Penn into YRCW,” Johnson said. “Because the merger could cost hundreds of Teamsters jobs, the majority of New Penn local unions have also requested a revote by New Penn members.”

Essentially, industry observers said New Penn would be closed if it were to merge with YRC’s other carriers, a prospect that most likely will change the vote’s outcome this time.

Members of three Teamsters locals in the Chicago area, also under their own contracts with YRC, also rejected the concessionary proposal. They most likely will also hold revotes facing the same prospect of job losses.

YRC said bargaining units representing less than 10 percent of the company’s union employees have not yet ratified the contract revisions.

“The company and the Teamsters are addressing employee concerns for these smaller bargaining units to reconsider the modifications,” YRC said. “The company has not filed any change of operations affecting the network status of New Penn.”

The mailed ballots for the New Penn revote are expected to be counted on Sept. 9.

YRCW Ballot Count

The Independent Election Supervisor has announced that due to an overwhelming number of ballots cast, the YRCW ballot count will not be completed until Friday, August 7, 2009.

The ballots are currently being sorted according to Local Union number and company. The balloting process will resume Friday morning with results expected to be announced Friday afternoon.

Results of the balloting process will be posted on www.teamster.org

IBT Readies Ratification Ballots for YRC Teamsters

Union employees could receive ballots on wage cuts, company offer by next week

Teamsters at YRC Worldwide’s motor carriers will begin to receive ballots as early as next week for a vote on a plan to steer the troubled carrier clear of bankruptcy.

If the process runs smoothly, YRC and the Teamsters could seal their deal as early as the first week of August.

The Teamsters union and the less-than-truckload carrier group agreed July 9 to swap wage and pension cuts for a greater union say in running the company. The agreement would save the company $45 million a month in 2009 and $50 million a month in 2010, totalling more than $800 million.

Actual savings would be higher, as the wage cuts would stay in place until the current contract expires in 2013.

The agreement would give the Teamsters a seat on YRC’s board of directors and the option to purchase up to 35 percent of the $9 billion company.

It also would allow the union to impose restrictions on future acquisitions, offshore labor and the use of YRC’s third-party logistics subsidiary.

In return, the Teamsters would accept a 15 percent wage cut for the life of their master contract, along with an 18 month cessation of contributions to union pension plans.

The ratification vote could be a tough fight for the company and the union. YRC Teamsters agreed to a 10 percent wage cut in January — this tacks another 5 percent.
The loss of the pension contributions may be the toughest pill to swallow, especially for older drivers near retirement age.

“I think it will pass, but not with as big a margin as the last vote,” one YRC driver familiar with the plan said. “A lot of guys are really concerned” about their pensions, but also about what would happen to the company if the plan were voted down.

The company’s union employees approved the first round of concessions earlier this year by a 72 percent majority.