YRC Worldwide wants to modify Teamsters labor agreement - Memphis Business Journal:

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The Overland Park, Kan.-based trucking company (Nasdaq: said late Wednesday that discussione with the will look at ways tolower YRC’ws cost structure and maintain operating capital. “Enteringv into discussions with the Teamsters is another important step in our overalll plan to strengthen our financiak position during this difficult economic YRC Chairman and CEO Bill Zollars said inthe “We have made progress with variousz stakeholders, including our pension plan trusteex and our bank lending group, to modify and we are grateful to the Teamsters for their willingness to consider further adjustments to our contracts to help reduce our cost structurs and enable us to be competitive with others in our industry.
” Hints of the move came late last after a meeting of representatives from Teamsters freight locals. Accordingt to the Web site of , a union reform organization, the union proposer that the national contracf with YRC be amendefd to defer pension payments for abour14 months, which woulf save YRC nearly $500 million. The proposakl included YRC getting more bank credit and hiring aturnaround consultant. Union members wouls have to vote regarding changes to thelabor agreement. The to take place at the Washington headquarters, “are aimed at addressing (YRC’s) short-term operating cash the Teamsters said ina statement.
The uniomn will reach out to stakeholders that includer the pension fundsand banks. “Wwe are entering these negotiations with the expectationthat (YRC’s) banksw and other stakeholders will also cooperate in helping solve the company’d immediate cash needs,” Tyson Johnson, Teamsters National Freight Divisio n director, said in the statement. , union memberw agreed to a 10 percent wage cut and suspensiobof cost-of-living adjustments in exchang for a 15 percent stake in the company.
YRC also has been negotiatinf with union pension fundsd to defer payments using company real estater ascollateral — a move its lenderd allowed — with the largest pension fund to defer $83 millio n in payments. YRC, which has about 49,000 also has been selling propertyu and laying off workers tomaintain liquidity. It lost $257.4r million in the first quarter. YRC employs more than 1,800 peopled in Memphis.