YRC Worldwide Provides Update on Ratification of Labor Contract Changes
OVERLAND PARK, Kan., Sept 09, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- YRC Worldwide Inc. (Nasdaq: YRCW) said today that union employees at its regional carrier, New Penn, have joined the more than 90 percent of its employees represented by the International Brotherhood of Teamsters in voting "yes" to ratify a previously announced modified labor agreement.
"As employee owners and stakeholders, our union workforce has made difficult decisions and demonstrated their commitment to achieving long-term success for YRC Worldwide. Revisions to the contract enable the company to strengthen its financial position," said Mike Smid, President of YRC Inc. and Chief Operations Officer of YRC Worldwide.
The modified agreement includes a 5 percent incremental wage reduction and an 18-month cessation of union pension fund contributions, which will not require repayment. Related savings from the pension and wage reduction are approximately $45 million per month, and primarily began in August. Savings increase to an estimated $50 million per month in 2010.
The company and the Teamsters are addressing employee concerns in the remaining smaller bargaining units who have yet to ratify the contract changes. This represents a small percentage of the company's unionized workforce.
YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Glen Moore, YRC Logistics, New Penn, Holland and Reddaway. YRC Worldwide has the largest, most comprehensive network in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. The company is headquartered in Overland Park, Kan.
Web site: www.yrcw.com
Follow YRC Worldwide on Twitter: http://twitter.com/yrcworldwide
SOURCE YRC Worldwide Inc.
"As employee owners and stakeholders, our union workforce has made difficult decisions and demonstrated their commitment to achieving long-term success for YRC Worldwide. Revisions to the contract enable the company to strengthen its financial position," said Mike Smid, President of YRC Inc. and Chief Operations Officer of YRC Worldwide.
The modified agreement includes a 5 percent incremental wage reduction and an 18-month cessation of union pension fund contributions, which will not require repayment. Related savings from the pension and wage reduction are approximately $45 million per month, and primarily began in August. Savings increase to an estimated $50 million per month in 2010.
The company and the Teamsters are addressing employee concerns in the remaining smaller bargaining units who have yet to ratify the contract changes. This represents a small percentage of the company's unionized workforce.
YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Glen Moore, YRC Logistics, New Penn, Holland and Reddaway. YRC Worldwide has the largest, most comprehensive network in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. The company is headquartered in Overland Park, Kan.
Web site: www.yrcw.com
Follow YRC Worldwide on Twitter: http://twitter.com/yrcworldwide
SOURCE YRC Worldwide Inc.
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